Residual income of the firm belongs to whom

Not financial advice: Residual income of the firm belongs to common stockholders; it is also known as passive or recurring income.

It is different from the regular wage that's based on the number of hours invested in a particular job, as it continues to generate itself even after the work has been completed. With this income, you can earn more while working less as it continues to pay recurrently for work done once.

According to NBCNews.com, Sen. Charles Schumer of New York sees job creation and middle-class income growth as defining issues for 2014. Find out more here.

Updated on Friday, December 27 2013 at 11:31AM EST