Earned Income and Entrepreneurship

List types of earned income.

• Wages, salaries, tips, and commissions are all types of earned income.

• Only wages and salaries are considered earned income.

• Tips and commissions are not types of earned income.

• Earned income only includes wages.

Discuss the advantages and disadvantages of self-employment.

• Self-employment offers flexibility and independence but may lack job security and benefits.

• Self-employment guarantees job security and benefits but lacks flexibility.

• Self-employment is always more profitable than traditional employment.

• Self-employment requires less responsibility than traditional employment.

Employee benefits play a crucial role in employee compensation by providing additional value beyond salary. Which of the following is NOT typically considered an employee benefit?

• Health insurance

• Paid time off

• Retirement plans

• Office supplies

What is the federal minimum wage per hour?

• $5.25

• $7.25

• $9.25

• $10.25

A standard American work week is an 8 hour day, 5 days a week, which equals how many hours per week?

• A) 35

• B) 40

• C) 45

• D) 50

Fill in the blank: Hours worked over 40 hours per week is called ________.

• overtime

• bonus time

• part-time

• flex-time

Employers must pay their employees overtime pay if they work over 40 hours per week, which is at least how many times the base rate?

• A) 1

• B) 1.5

• C) 2

• D) 2.5

The amount of the tip may be based on which of the following?

• The quality of service provided

• The time of day

• The location of the service

• The number of people served

Who typically receives tips from customers in restaurants?

• Mail Delivery Drivers

• Waitstaff

• Managers

• Doctors

What is a commission?

• A fixed salary

• A percentage of a sale

• A bonus

• A tax