First Year Business

Which one of the following income groups is NOT considered household income?

• Wage

• Salary

• Self Employment Earnings

• Child Benefit

• All are considered household income.

One of the following does not satisfy the definition of an "employee?"

• a person who works for a charity voluntarily

• a farmer who works on his own farm

• a civil servant who works for a government organization

• a doctor who works in a hospital

Answer explanation

The main distinction between employees and volunteers is that a volunteer does not get paid and the volunteer cannot be forced to perform the actual work.

Which one of the following cannot satisfy the definition of an "employer"?

• Bill Gates

• Micro-Soft

• United Nations

• Air Force

• All of them satisfy

Answer explanation

Any person, company, or organization (governmental and non-governmental) who pays people to work for them can be an employer.

Click the ones you think are household income.

• wages and salaries

• Pensions and child benefits

• Windfall income

• interest on savings

• The value of your house

A grant is a sum of money paid to someone for a specific reason. It does not need to be repaid. One of the following is NOT an example of a grant.

• Student Loan

• EU Farm Subsidy

• Student Support

• Covid Support for Businesses

Why do banks and credit unions pay interest on savings?

• because they loan the money to make a profit

• because they want to encourage people to save more money

• because they want to keep money safely

• the government told them to do so

A dividend is the portion of the company profits paid to shareholders.

• True

• False

Anybody who buys shares in a company is called a ________.

Shareholders may be rewarded by receiving a _______from a company if it makes a profit.

Sam earns €120,000 per annum from his job as a finance professional. His spouse Alex earns €80,000 as an analyst. Together, their family income is €200,000. Sam's nephew Jim, who is 18, also lives with them. Jim earns €40,000 as a salary from his job. Assuming these individuals' earnings are their only income, their total household income is _______

• €200,000

• €440,000

• €240,000

• €400,000