Personal Finance Chapter 2. © EMC Publishing, LLC Are these statements fact or fiction? Explain...

Personal Personal FinanceFinance

Chapter 2Chapter 2

© EMC Publishing, LLC

Are these statements fact or fiction? Explain your answers.

• If you are clean and well groomed, your supervisor will probably assume your work is reliable.

• Legal immigrants don’t need a Social Security card to work in the United States.

• People get fired for using work computers for personal use.

• Generally, state-supported colleges and universities are less expensive to attend than private colleges.

• Most entrepreneurs hold other jobs while starting their businesses.


• First impressions (dress nicely)

Starting a JobFirst Day



• Form W-4 (advance to see sample)


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Starting a JobForm W-4

Or leave blank



John A. Smith 123 45 6789

1315 Main Street

Friendly, MA 12345

x

25.00

John A. Smith Today’s Date

Starting a JobForm W-4



• Form W-4 • Social Security card




• Form W-4

• Social Security card• Work permit



• First impressions matter (dress nicely)

• Form W-4

• Social Security card

• Work permit

• Company policy handbook


• Treat others with respect.

• Honor commitments.

• Support others in achieving success.

• Provide clear, realistic, and timely proposals to management and supervisor.

• Report problems to supervisor.


Develop Good Working RelationshipsTips

• Follow the rules.

• Develop a good work ethic and a positive attitude.

• Accept criticism.

• Admit your mistakes.


ExpectationsEmployer

• Receive a paycheck.

• Receive fringe benefits.

• Receive training.

• Receive accommodations for disability.

• Be told of changes in responsibilities.

• Receive evaluation of work performance.


ExpectationsEmployee


• Gross pay (including overtime)

• Deductions

• Net pay

Take-Home PayWhere Did My Check Go?

Paycheck Stub

$830.00-$154.28-------------------

$675.72


• Flextime

• Job sharing

• Telecommuting

Alternative Work Arrangements


Which of the following is not a requirement for starting a job?

A. Fill out a Form W-4.

B. Have a Social Security card.

C. Obtain a work permit if your state requires one.

D. Review the company policy handbook.

E. All of these are needed to start a job.


• Help coworkers.

• Take the initiative.

• Find a mentor.

Earning a PromotionPositive Evaluation

Jane L. SmithGeorge Jones

ClerkMay 1, 2008

EXCELLENT: Give her a promotion & RAISE!


Improving Your SkillsTraining and Education


Improving Your SkillsTraining and Education

• In-service training sessions

• Colleges and universities

• Community colleges

• Trade schools

• Apprenticeships

• Nontraditional programs

• How do you plan to improve your skills after high school?

• Should everyone go to college? Why or why not?

• What alternatives does your community offer for young people who do not go to college?



EntrepreneurshipOwning Your Own Business

• Advantages of entrepreneurship– Be your own boss

– Set your own hours

– Make all the decisions

– Possibly gain financial security

– Create something you can pass on to children or others


EntrepreneurshipOwning Your Own Business

• Disadvantages of entrepreneurship– Work long hours to succeed

– Take a big financial risk

– Risk high chance of failure• Only 20% of new

businesses last morethan four years.


Which of the following is not an advantage of starting your own business?

A. You have to work long hours to succeed.

B. You are your own boss.

C. You receive all the profits from your work.

D. Success brings financial security.

E. You set your own hours.


EntrepreneurshipSole Proprietorship

• Advantages of sole proprietorship– All profits to single

owner

– No boss

– Easy start-up

– Simple tax filing


EntrepreneurshipSole Proprietorship

• Disadvantages of sole proprietorship– Limited resources

• Capital ($)

• Expertise (skills)

– Limited life of business(ownership not transferable)

– Unlimited personal liability of owner


EntrepreneurshipPartnership

• Types of partners– General

– Limited• Secret

• Silent

• Dormant

• Nominal



• Advantages of partnership– More resources than sole proprietorship

• Capital ($)• Expertise (skills)

– Easy start-up

– Limited sharing of profitsand decision making



• Disadvantages of partnership– Fewer resources than corporation

• Capital ($)

• Expertise (skills)

– Possible disagreementbetween owners

– Unlimited personal liability of owners


EntrepreneurshipCorporation

• Advantages of corporation– More resources

• Capital ($)• Expertise (skills)

– Transferability of ownership

– Limited involvement of owners if desired

– Limited personal liability of owners


StockStockStock

StockStock

Articlesof

Incorporation

TAXTAX

EntrepreneurshipCorporation• Disadvantages of corporation

– Lack of control• Several owners

– More difficult start-up• Charter or articles of incorporation

– Double taxation • Corporate and personal


EntrepreneurshipLimited Liability Company (LLC)

• Limited personalliability of owners

• Simpler tax situationthan corporation

• Easier start-up thancorporation

• Management flexibility

UnlimitedLiability


Which of the following is an advantage of both a corporation and an LLC?

A. Unlimited capital

B. Easy start-up

C. Limited personal liability of owners

D. No boss

E. Double taxation


• Which form of business would best suit someone who likes to work alone?

• Which form of business would best suit someone who is very skilled at making things but is not very skilled at bookkeeping and marketing?

• Is it worth the risk and headaches to start your own business?

Personal Finance Chapter 2. © EMC Publishing, LLC Are these statements fact or fiction? Explain...

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