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WorksheetsBFM- Test #1 Study Packet
Total questions: 45
Worksheet time: 23mins
What is a pay stub?
A document that shows your total earnings and deductions.
A list of your monthly expenses.
A receipt for your purchases.
A summary of your bank transactions.
What does the pay period on a pay stub indicate?
The total amount of money you earned.
The time frame for which you are being paid.
The amount of taxes deducted.
The number of hours you worked.
How is gross pay different from net pay?
Gross pay is the amount you take home, while net pay is the total earnings.
Gross pay includes bonuses, while net pay does not.
Gross pay is the amount after deductions, while net pay is the total earnings before deductions.
Gross pay is the total earnings before deductions, while net pay is the amount after deductions.
Which of the following is NOT a type of deduction from your paycheck?
Medicare tax
Federal income tax
Social Security tax
Grocery expenses
Match each account type with its primary purpose.
To save for retirement.
401(k) account
To pay for medical expenses.
Health Savings Account (HSA)
To pay for education.
529 Plan (College Savings)
To cover daily expenses.
Checking account
What should you do if you find an error on your pay stub?
Ignore it.
Report it to your supervisor or payroll department immediately.
Wait until the next pay period.
Try to fix it yourself.
Why is it important to understand your pay stub?
To get a promotion.
To ensure you are being paid correctly and to manage your finances better.
To impress your friends.
To avoid paying taxes.
What can you do to lower your taxable income?
Contribute to a pre-tax retirement account.
Work fewer hours.
Ignore your pay stub.
Spend more money.
How can understanding your deductions help you?
Make better financial decisions and plan for the future.
Avoid working altogether.
Increase your gross pay.
Reduce your working hours.
What is the benefit of knowing the length of your pay period?
To plan your work hours and budget effectively.
To increase your deductions.
To avoid paying taxes.
To take more vacations.
Which type of business is owned and operated by a single person?
Sole Proprietorship
Partnership
Corporation
Franchise
A business owned by two or more people who share profits and responsibilities is called (a) .
Which type of ownership offers limited liability protection to its owners?
Sole Proprietorship
Partnership
Corporation
Franchise
If you buy the rights to use a well-known company’s brand and business model, you own a:
Sole Proprietorship
Partnership
Corporation
Franchise
Two advantages of a partnership are (a) .
A business might choose to become a corporation because:
It provides limited liability to its owners.
It guarantees higher profits.
It eliminates all taxes.
It requires no legal paperwork.
Select one example of a franchise from the options below.
McDonald's
Microsoft
Harvard University
Amazon Rainforest
One disadvantage of owning a franchise is (a)
One disadvantage of a sole proprietorship is:
Unlimited liability (i.e., the owner is personally responsible for all debts and obligations of the business).
Limited control over business decisions.
Profits must be shared with partners.
Complex and expensive to establish.
Match the Skills to the jobs:
Communication
Administrative Assistant
Teamwork
Restaurant Server
Problem-solving
IT Support Technician
Time management
Graphic Designer
Customer service
Retail Sales
Associate
What is the term for the following definition: A business owned and run by one person?
Sole Proprietor
Partnership
Corporation
Limited Liability Company
What is the term for the following definition: A business owned by two or more people who share profits and responsibilities?
Partnership
Corporation
Sole Proprietorship
Franchise
Match each business type with its correct definition.
Corporation
A large business owned by many people called shareholders, with legal rights separate from those of the owners.
Sole Proprietorship
A business owned and run by one individual, with no distinction between the owner and the business.
Partnership
A business owned by two or more people who share profits, losses, and management responsibilities.
Franchise
A business that operates under the name and business model of an established company, typically paying fees or royalties.
A business that uses the name and ideas of an established company is called a (a) .
What is the term for the following definition: Being responsible for debts or issues in a business.
Liability
Asset
Revenue
Equity
What is the term for the following definition: People who own parts (shares) of a corporation?
Shareholders
Employees
Managers
Creditors
The term for the person or group who buys the right to open and run a franchise is called a (a) .
Match the following terms with their correct definitions related to franchising.
Franchisor
The company that allows others to use its name and system
Franchisee
The individual or business that purchases the right to use another's name and system.
Shareholder
A person or entity that owns shares in a company.
Distributor
An entity that sells goods and services to retailers or directly to customers, but is not part of a franchise system.
Match the following financial terms with their correct definitions.
Profit
The money a business makes after paying all its costs.
Revenue
The total income a business receives before any costs are deducted.
Expense
The money a business spends to operate and produce goods or services.
Debt
The amount of money a business owes to others.
What is the term for the following definition: The chance of losing money or facing problems in business.
Risk
Profit
Revenue
Guarantee
What is the term for the following definition: The money or resources used to start or run a business?
Capital
Revenue
Inventory
Liability
(a) is the term for the following definition: The way a business is owned, whether by one person or by many people.
What is the term for the following definition: When a business owner is personally responsible for all debts and losses?
Unlimited Liability
Limited Liability
Joint Venture
Franchise
What is the term for the following definition: When owners are responsible only for the money they invested, not their personal belongings.
Limited Liability
Unlimited Liability
Joint Venture
Sole Proprietorship
Match each scenario to the correct type of business ownership:
Partnership
Two friends start a landscaping company.
Franchise
Buy the rights to use a name & systems
Sole proprietorship
Jamie owns & runs a bakery alone
Corporation
Large company sells shares of ownership
What skill is demonstrated by arriving on time and completing your shift at work?
Punctuality
Creativity
Technical knowledge
Team leadership
While helping to ring up sales at a school store, you notice that an item was scanned twice and fix it before the customer pays. This demonstrates which skill?
Attention to detail
Teamwork
Physical strength
Time management
Keeping track of supply orders for a fundraiser using a checklist demonstrates (a) skill.
Your first sales pitch for a class project doesn't work, but you adjust your plan and try again successfully. This demonstrates (a) .
Your boss at a summer job shows you a faster way to stock shelves, and you practice until you get better. This is an example of which skill?
Learning a new skill
Time management
Teamwork
Customer service
You help a new coworker learn how to use the cash register by patiently explaining each step. This demonstrates which skill?
Communication skills
Technical skills
Physical strength
Mathematical skills
Listening carefully to an upset customer and offering a solution demonstrates which skill?
Problem-solving
Technical expertise
Salesmanship
Product knowledge
Finishing your assigned tasks early and asking your supervisor if there is anything else you can help with demonstrates (a) .
If you make a mistake at work, you admit it and find a way to fix it. What skill is this?
Accountability
Creativity
Time management
Technical skills
You set a goal to save money from your part-time job and track your progress each week. This is an example of which skill?
Time management
Financial literacy
Teamwork
Communication
