Intro to Finance Chapter 3

If you regularly receive more than $30 in tips per month, the federal rules allow for a minimum wage of _____ per hour.

• $3.25

• $7.13

• $7.25

• $2.13

To increase your investment income, you should do which of the following?

• buying assets that have the potential to go up in value

• holding assets over the long term

• letting the power of compounding generate unearned income

• All are correct

Which of the following is a benefit under the Social Security program?

• retirement benefits

• disability benefits

• family benefits for children under the age of 18 if you die

• All are correct

Which of the following provides money to low-income household to purchase food?

• TANF

• SNAP

• Medicare

• Medicaid

Which of the following refers to being responsible for paying all liabilities a business incurs?

• unlimited liability

• self-employed

• limited liability

• bankruptcy

Which of the following refers to a legal structure that is separate from the the owners of the business?

• limited partnership

• sole proprietor

• corporation

• general partnership

Which of the following is what employers pay for an employee to complete a task?

• income

• wage

• earnings

• salary

Which of the following is the most basic type of partnership?

• limited partnership

• sole proprietor

• limited liability partnership

• general partnership

Which of the following refers to compensation received for services performed for an employer?

• income

• bonus

• earnings

• wage

Which of the following refers to having your employer take money automatically from your paycheck and contribute it directly to a retirement savings plan or a savings account?

• payroll deduction

• savings ratio

• total debt to income ratio

• targeted savings ratio