Asked by Viraj Mistry on May 05, 2024
Verified
Luigi owns and operates a small restaurant.The income he receives from the restaurant is classified as:
A) saving.
B) proprietor's income.
C) wages and salaries.
D) rental income.
E) dividends.
Proprietor's Income
The income earned by the owner of a sole proprietorship from the business.
Restaurant
A business establishment where meals or refreshments can be purchased and consumed by patrons.
Luigi
A fictional character in the Mario video game franchise, created by Nintendo, known as Mario's brother.
- Comprehend the different forms of income received by households and the varieties of goods.
Verified Answer
PR
Prashanthi ReddyMay 08, 2024
Final Answer :
B
Explanation :
The income Luigi receives from his restaurant is considered proprietor's income since he owns and operates the business. A is incorrect because saving refers to money that is not spent or invested. C is incorrect because wages and salaries are typically earned by employees, not business owners. D is incorrect because rental income is earned from renting out property, which Luigi is not doing. E is incorrect because dividends are typically earned by shareholders in a company, not small business owners.
Learning Objectives
- Comprehend the different forms of income received by households and the varieties of goods.