What is a stream of income?

Revenue stream is a term used to describe a form of income in business or government. Any activity that generates revenue can be described as a flow of income and it is common for businesses to have multiple flow flows. Governments also rely on more flow flows from sources in addition to taxes. As business expands, the owner will often look for additional flows of income and analyze his ideas based on market predictors, potential risk and return on investment. Having more income flows can increase the likelihood that the company will be financial weather because it relies on one source, such as sales, for all its income.

Comparison of individual trade versus shopping center can be a good illustration of income stream. The shop owned by the local company can only have one or two streams of income, such as sale and service. However, the aspseity that owns a warehouse -style building and turns it into a shopping center can have manyM greater number of income flows. Each space that is rented to an individual business in the store is a separate stream of income for the owners of the shopping center. If a single business stops from business, it is often the end of this business and prohibits the restructuring plan. If one store closes in the store, the shopping center owner still has many other tenants and therefore does not suffer as badly as a company with only one stream of income.

Governments often use the term "flow of income" instead of "taxes" that has a more negative connotation. Government revenue flows may include income, property and corporation taxes. They also collect licenses such as drivers' licenses and business licenses. Governments often collect other fees and fines, such as fines from criminal convictions and speed tickets or from accounting for public -owned parks. When the Governments moves low on money, lawmakers simply look for additional sources of income in the form of taxes and fees to replacei deficiency.

Owners of businesses often look at several factors when considering whether to expand the operations to include a new flow of income. One example is market volatility. If the market has a wide swing in a certain area, it may decide not to include this form of intake and instead prefer predictability. In an example of a shopping center, the amount of pedestrian operations that they create can bring the predictability needed for the company's owners to try new things. There is less risk to access customers and therefore the potential return on investment is greater.