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Simple English definitions for legal terms
nonoperating income
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A quick definition of nonoperating income:
Nonoperating income is money earned by a business from investments or other sources that are not related to its main operations. It is different from operating income, which is money earned from the normal activities of the business. Nonoperating income can include things like interest earned on investments or gains from the sale of assets.A more thorough explanation:
Nonoperating income refers to the money earned by a business from investments or other sources that are not related to its primary operations. It is a type of income that is not generated from the regular business activities of a company.
Examples of nonoperating income include:
- Interest earned on investments
- Dividends received from other companies
- Gains from the sale of assets
- Income from rental properties
These examples illustrate how a business can earn income from sources other than its primary operations. For instance, a company may invest in stocks and earn dividends from those investments. This income is considered nonoperating because it is not generated from the company's regular business activities.
non omittas propter liberatem | nonoperative performance bond