EOP Business Management Study Guide Part 1

Total payment for work before taxes and deductions. (Worked 40 hours per week at $10 per hour….40*10=$400 in gross pay) what is this type pay?

• net pay

• salary

• gross pay

• deductions

Gross pay minus taxes and deductions such as life& health insurance, 401K ( Worked 40 hours per week at $10 per hour….40*10=$400 in gross pay but 30% federal taxes…$400*.30=$120 due in federal taxes.. therefor net pay is $280 ($400-120) what is type pay called?

• gross pay

• commission

• net pay

• salary

What type of pay is the following example: Earn $40,000 per year : $40,000/52=$769.23 weekly gross pay?

• hourly pay

• commission

• net pay

• Salary based pay

Commission based pay is when you

earn more as you sell more or perform better such as a car salesman.  If he earns a 7% commission, what would his weekly gross pay be if he sold one car for $12,000? 

• 12,000*.07= $840 

• 12,000*.06= $720 

• 12,000*.04= $480

• 12,000*.05= $600

FICA tax = Federal Income Contributions Act will pay for which taxes?

• Income Taxes

• Medicare & Social Security taxes

• Sales Taxes

• Salary

Basic Accounting Equation A=L+OE what does these letters respresent? Anything of value is _______ and anything that you owe______ and the capital you invest in the business is called ___________?

• Assets, Limited, Owners

• Advancement, Language, Owners

• Assets, Liability & Owner's Equity

• Accounting, Limited, Owners

Match the following

• Partnership

• 
• Sole proprietorship

• 
• Limited Liability Company

• 
• Corporation

• 
• Taxation

• 

Business owned by one person, unlimited liability, owner bears all responsibility and decision making. 

• Partnerships

• Corporations

• Hustler's

• Sole Proprieertorship

This type of business has 2 or more owners with unlimted liability and share all responsibility and decision making.

• Corporation

• Franchise

• Partnerships

• Shareholders

This business ownership is owned by shareholders, limited liability meaning they can only lose what they invest, face double taxation _______.