Personal Finance Chapter 11

The Internal Revenue Service (IRS) is the federal government agency responsible for:A) Keeping the unemployment rate low B) Writing tax lawsC) Filling out your tax forms D) Tax collection and tax law enforcement d
What is the difference between gross pay and net pay?A) Net pay describes your pay after deductions; gross pay is before.B) Gross pay describes your pay after deductions; net pay is before.C) Gross and net pay are the same.D) None of the above a
Sales tax and excise tax are both taxes on:A) Income B) Wealth C) Consumption D) Property c
Which of the following should not be a major consideration when it comes to selecting your careerpath?A) What you are naturally good at B) What your interests areC) What your parents think you should doD) What you are passionate about c
Which of the following are characteristics of an effective personal goal?A) It should be measurable and specific.B) It should be determined by your friends or parents.C) It should be easy to accomplish.D) It should be vague. a
Which of the following statements about goal setting is false?A) You should share your goals with the people closest to you.B) Your goals should have time limits.C) Once youʹve written your goals down, you should put the list away and check it in a yearto see if youʹve achieved them.D) You should make your goals challenging yet attainable. c
When it comes to mentoring, you should not:A) Follow through and act on what youʹve learnedB) Choose wiselyC) Continue the mentoring cycle by one day becoming a mentor yourselfD) Find and keep a single mentor d
When applying for a job, you should:A) Follow up with the employer B) Present yourself wellC) Provide a resume and cover letter D) All of the above d
During your first interview with a company, you should not:A) Be personable and try to connect with the interviewerB) Show interest and be enthusiasticC) Ask about salaryD) Bring extra copies of your resume c
The government relies on taxes to:A) Remind citizens of the governmentʹs powerB) Burden the public with an extra expenseC) Pay for services such as roads, education and social servicesD) All of the above c
The day that income tax filings are due in the United States:A) June 15 B) December 1 C) April 15 D) January 1 c
When a company hires you, you will fill out a ________ form. The information on this form is the basis for determining how much income tax should be withheld from your paycheck.A) 1040EZ B) W-2 C) 1040 D) W-4 d
This tax pays for benefits that workers and families receive for either Social Security or Medicare.A) Sales taxB) Federal Insurance Contribution Act (FICA)C) State income taxD) Excise tax b
Income generated by selling an investment at a higher price than you paid for it:A) Earned income B) Secondary incomeC) Portfolio income D) Passive income c
Which of the following statements about taxes is false?A) Three taxes are deducted from your paycheck: federal income tax, state income tax (if applicable) and FICA.B) Not all types of income are taxed; while earned income and passive income are taxed, portfolio income is not taxed.C) The primary taxes on consumption are sales tax and excise tax.D) Taxes on wealth and property include property tax, taxes on inheritance, estate taxes and gift taxes. b
The amount of money a profession brings should be your first priority in selecting your career path. False
Since the job market constantly changes, odds are that you will work in more than one career field in your lifetime. True
People who fall under the ʺStabilizingʺ characteristics in the DISC Profile are likely to be calm and dislike conflict. True
Even though your knowledge and work experience will change throughout your life, youʹll never outgrow who you are. True
You should only make and focus on one goal at a time. False
It is expected that young adults will achieve the same standard of living as their parents shortly after graduating from college. False
Early work experiences prior to your career job really have no benefit other than providing a small income. False
As you acquire more education and work experience, your income and choice of jobs should rise as well. True
Without contentment, your whole life will just be jumping from one thing to another, always hoping that the next thing will be the thing that will make you happy. True
Any income that is generated by working (passive income, earned income) earned income
Taxes paid out by anyone who earns an income (estate taxes, income taxes) income taxes
The process by which we ʺmarketʺ ourselves to others by highlighting personal strengths, interests, unique qualities and identifying goals (personal branding, personal selling) personal branding
A brief account of oneʹs professional or work experience and qualifications, often submitted with an employment application (contact letter, resume) resume
Tax on goods and services that goes to your state or local government (gift tax, sales tax) sales tax
Taxes paid by anyone who owns property such as land, a home or commercial real estate (property taxes, estate taxes) property taxes
A federal insurance program funded by taxpayer dollars that provides benefits to people who are retired, unemployed or disabled (withholdings, Social Security) Social Security
The amount of income left after taxes have been deducted (gross pay, net pay) net pay
This tax is the main source of revenue for local governments (excise tax, property tax) property tax
Money earned on a regular basis with little or no effort required to maintain it, i.e., rental income from real estate (portfolio income, passive income) passive income
Would you do something you did not like in order to make a higher income? Why or why not? vary…
Why is it important to understand your unique personality traits? Varied Answers, Example: It is important that people work in their strengths so that they may be happy and fulfilled by what they do. You should find work that blends your individual skills, abilities, personality traits, values, dreams, and passions
What are some important things to do when interviewing for a job? Answers will vary but might includepresent yourself well, arrive 10 to 15 minutes early, dress professionally, beyourself, be organized, etc.
List and describe the three types of income. Include information regarding how each one is taxed. 1. Earned income: any income (wages/salary) that is generated by working. Earned income is taxed at a higher rate than any other type of incom.E2. Portfolio income is generated by selling an investment at a higher price than you paid for it. It is often taxed at very high rates; sometimes as high as earned incom.E3. Passive income is money earned on a regular basis with little or no effort required to maintain it, such as rental income or intellectual property. It often allows for the most favorable tax treatment.
Jon gave you a great deal of practical information on achieving success and reaching your goals. What was your biggest takeaway from his lessons? Answers will vary
Summarize Jonʹs message regarding ʺCriticʹs Math.ʺ Answers will vary but should highlight the fact that you should not let negative feedback overpower your dreams.
Describe the benefits of early entry-level jobs. Answers will vary. Example: You should always make it a point to learn and grow from a position. With the rightattitude, you can acquire responsibility, respect, humility, work ethic and loyalty, all of which will translate to yourfuture career of choice and lead to future advancement.
After an interview, you should be patient and wait for the employer to contact you so that youdonʹt appear overly eager for the position. false

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