When do you receive active income?

Prepare for the Georgia Real Estate Post-License Exam. Utilize multiple choice questions and engage with helpful hints and explanations. Ensure your success!

Active income is defined as the earnings generated from activities in which you actively participate or work. This includes income that individuals earn from their job, business operations, or any hands-on work they do.

When you work for your business, you are engaging directly in activities that generate income, such as providing services, selling products, or managing the operations. This means you are actively contributing to the income-generating processes, which qualifies the earnings as active income.

Other options mention sources of income that either involve passive participation or are results of investments or sales. While selling a property or receiving commissions from sales can also involve effort, the fundamental principle is that active income specifically pertains to work done for a business or job.

Hence, the definition aligns clearly with the notion of active income, making it the correct choice in this context.

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