EOP Business Management Study Guide Part 1

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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?

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gross pay

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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?

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net pay

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

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Salary based pay

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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?

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$840

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

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Medicare & Social Security taxes

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

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Assets, Liability & Owner's Equity

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

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Sole Proprietorship

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

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Partnerships

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

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corporation , Corporation

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LLC = Limited Liability Company is single taxed and have limited liability.

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True