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Economic net income means for any period the after tax net income after all compensation expenses of the esurance segment for such period determined in accordance with gaap adjusted to i standardize investment returns at the ten year treasury yield plus 100 basis points and ii amortize policy acquisition expenses over the term of the policy and its expected renewals in each case as determined by the board.
Net income definition economics. Economic income is a term that is used to describe the amount of income that an entity can comfortably spend during a specified period of time. A common term for profit as the difference between total revenue and total cost. Term net income definition. Income is money or some equivalent value that an individual or business receives usually in exchange for providing a good or service or through investing capital.
Income is used to fund. When the concept of economic income is applied to the household budget the term usually refers to the amount of income that remains after all essentials have been purchased for the period. Economic income or loss recognizes all gains and. In economics it is frequently used to imply the remaining value after accounting for a specific commonly understood deduction in these cases it is contrasted with the term gross which refers to the pre deduction value.
3 profits flowing to businesses and dividends distributed to shareholders. Economic income is the way for companies to account for changes in the value of a given asset in the market. 5 interest paid to those who hold money in deposit accounts or who own bonds etc. When used in the real world of business wheeling and dealing this notion of net income general refers to accounting profit rather than economic profit.
4 rental income flowing to people who own and lease out property. A change in market value rather than cash received is the perfect example of an economic income. Net interest income nii is the difference between the interest income a bank earns from its lending activities and the. 2 money paid to people receiving welfare benefits such as the state pension and tax credits.
As used in this definition compensation expenses include w.
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