Jobs & Work
The absolute lowest amount an employee can be paid is called:
Minimum Wage
What is a business that is owned by 2+ people who all share the risk and reward evenly?
A partnership
What two things do you need to know to make a budget?
Income and expenses
Give an example of a want that is a good.
Want = not needed for life
Good = a physical thing you can carry/touch
Knowing a stocks _____ / _____ can help you better diversify.
Sector / Industry
Who is considered unemployed?
People without a job who are currently searching for a job
What type of business is only owned by 1 person?
Sole-Ownership / Proprietorship
Using 50-30-20, what percentage of your income should you save?
20%
What does a consumer do?
Buy goods & services
Why is diversification important?
Minimize risk
Who is included in the labor force (2 conditions)?
15 and older, employed or unemployed
What is a business' income called?
Revenue
Financial goals (short- and long-term)
How are saving and investing different?
Saving = setting money aside in low-risk accounts (savings account at bank) for short term goals
Investment = spending money in higher-risk investments (stocks, funds, ect) to see long term growth
What is the difference between a stock and mutual fund?
Stock = a piece of 1 company
Mutual fund = a piece of a pre-mixed collection of companies
What is the difference between a salary and a wage?
Salary = year pay, divided into even chunks (# of days worked does not impact pay)
Wage = hourly rate, based on how much you work
What business is owned by a group of investors and can be bought/sold on the stock market?
(Public) Company / Corporation
What is the difference between net and gross income?
Net = after taxes
Gross = before taxes
What is scarcity?
Not having enough of something for everyone
What does the beta of a stock measure?
Volatility
What is the difference between a casual and seasonal worker?
Casual = called-in, not a reliable schedule
Seasonal = only works that season, not the whole year
What is 1 reason a business might exist?
Make a profit , Provide good/service , Extend a hobby , Meet a social need , or Provide employment
A good financial goal should be 2 things, what are they?
Realistic and Specific
What type of bond is used by companies to raise money?
Corporate bonds
What type of bond is used by states or cities to raise money?
Municipal Bonds