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What Is Residual Income?
Residual income is income that one proceeds to receive after the completion of the income-producing work. Instances of residual income include royalties, rental/real heritage income, interest and dividend income, and income from the continuous sale of consumer goods (such as music, digital art, or books), amongst others. In corporate finance, residual income have the right to be offered as a measure up of corporate performance, through which a company"s monitoring team evaluates the income created after paying all relevant prices of capital. Alternatively, in personal finance, residual income can be characterized as either the earnings received after substantially all of the work has been completed, or together the income left end after paying all an individual debts and obligations.