Income from Business, part of profit that remains at the disposal of the investing capitalist (industrial or merchant) after he has paid interest on the capital he has borrowed. Marx described income from business in the fifth section of Volume III of Capital. To derive more profits, capitalists use their own and loan capital, which they borrow from finance capitalists, to expand their own production. Loan capital makes the normal circuit of industrial capital. Capitalists use it to purchase means of production and labour power. By exploiting wage labour, they extract surplus value which takes a converted form of profit. When capitalists use loan capital in production, they must return part of profit to the loaning capitalist. As a result, the profit obtained from loan capital can be divided into two parts: interest, appropriated by the finance capitalists, and income from business appropriated by the investing capitalists and representing the average profit minus interest. The division of profit into interest and income from business disguises capitalist exploitation and distorts the real nature of these components of surplus value. The exploiting nature of interest is obscured by the fact that the loaning capitalist does not have any direct contact with the wage workers. This makes it appear that interest is produced by capital itself. Income from business at first sight appears as the payment due to the capitalist for “supervision” and management of production. The division of profit into interest and income from business produces certain contradictions between loaning and investing capitalists, since no matter how much the profit might be, the amount of interest and the income from business are inversely proportional: the higher the former, the lower the latter, and vice versa. But these contradictions do not eliminate their common class interests in augmenting surplus value, i. e., in intensifying the exploitation of the working class.