Which of the following describes a situation where you would most likely choose passive income over another type of income?
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A very successful band wants to record a song you wrote. You can sell the rights to the song or keep the rights and collect a percentage of the price of each compact disk sold.
You own a home. You can sell it now to make a profit or you can rent it out for a year, giving the renter the option to buy it for the balance owed.
The stocks you own go up and down in value, but are now up. You can keep the stocks and collect any monthly dividends or sell them for all for profit now.
Your company offers you two options of how you can be paid. You can be paid an annual salary or an hourly wage.