Personal Finance Chapter 2

© EMC Publishing, LLC Are these statements fact or fiction? Explain your answers. If you are clean and well groomed, your supervisor will probably assume your work is reliable. Legal immigrants don’t need a Social Security card to work in the United States. People get fired for using work computers for personal use. Generally, state-supported colleges and universities are less expensive to attend than private colleges. Most entrepreneurs hold other jobs while starting their businesses.

© EMC Publishing, LLC First impressions (dress nicely) Starting a Job First Day

© EMC Publishing, LLC First impressions (dress nicely) Form W-4 (advance to see sample) Starting a Job First Day

Starting a Job Form W-4 Or leave blank © EMC Publishing, LLC

John A. Smith Main Street Friendly, MA x John A. Smith Today’s Date Starting a Job Form W-4

© EMC Publishing, LLC First impressions (dress nicely) Form W-4 Social Security card Starting a Job First Day

© EMC Publishing, LLC First impressions (dress nicely) Form W-4 Social Security card Work permit Starting a Job First Day

© EMC Publishing, LLC First impressions matter (dress nicely) Form W-4 Social Security card Work permit Company policy handbook Starting a Job First Day

Treat others with respect. Honor commitments. Support others in achieving success. Provide clear, realistic, and timely proposals to management and supervisor. Report problems to supervisor. © EMC Publishing, LLC Develop Good Working Relationships Tips

Follow the rules. Develop a good work ethic and a positive attitude. Accept criticism. Admit your mistakes. © EMC Publishing, LLC Expectations Employer

Receive a paycheck. Receive fringe benefits. Receive training. Receive accommodations for disability. Be told of changes in responsibilities. Receive evaluation of work performance. © EMC Publishing, LLC Expectations Employee

© EMC Publishing, LLC Gross pay (including overtime) Deductions Net pay Take-Home Pay Where Did My Check Go? Paycheck Stub $ $ $675.72

© EMC Publishing, LLC Flextime Job sharing Telecommuting Alternative Work Arrangements

© EMC Publishing, LLC Which of the following is not a requirement for starting a job? A.Fill out a Form W-4. B.Have a Social Security card. C.Obtain a work permit if your state requires one. D.Review the company policy handbook. E.All of these are needed to start a job.

© EMC Publishing, LLC Which of the following is not a requirement for starting a job? A.Fill out a Form W-4. B.Have a Social Security card. C.Obtain a work permit if your state requires one. D.Review the company policy handbook. E.All of these are needed to start a job.

© EMC Publishing, LLC Help coworkers. Take the initiative. Find a mentor. Earning a Promotion Positive Evaluation Jane L. Smith George Jones Clerk May 1, 2008          EXCELLENT: Give her a promotion & RAISE!

© EMC Publishing, LLC Improving Your Skills Training and Education

© EMC Publishing, LLC Improving Your Skills Training and Education In-service training sessions Colleges and universities Community colleges Trade schools Apprenticeships Nontraditional programs

How do you plan to improve your skills after high school? Should everyone go to college? Why or why not? What alternatives does your community offer for young people who do not go to college? © EMC Publishing, LLC

Entrepreneurship Owning Your Own Business Advantages of entrepreneurship – Be your own boss – Set your own hours – Make all the decisions – Possibly gain financial security – Create something you can pass on to children or others

© EMC Publishing, LLC Entrepreneurship Owning Your Own Business Disadvantages of entrepreneurship – Work long hours to succeed – Take a big financial risk – Risk high chance of failure Only 20% of new businesses last more than four years.

© EMC Publishing, LLC Which of the following is not an advantage of starting your own business? A.You have to work long hours to succeed. B.You are your own boss. C.You receive all the profits from your work. D.Success brings financial security. E.You set your own hours.

© EMC Publishing, LLC Which of the following is not an advantage of starting your own business? A.You have to work long hours to succeed. B.You are your own boss. C.You receive all the profits from your work. D.Success brings financial security. E.You set your own hours.

© EMC Publishing, LLC Entrepreneurship Sole Proprietorship Advantages of sole proprietorship – All profits to single owner – No boss – Easy start-up – Simple tax filing

© EMC Publishing, LLC Entrepreneurship Sole Proprietorship Disadvantages of sole proprietorship – Limited resources Capital ($) Expertise (skills) – Limited life of business (ownership not transferable) – Unlimited personal liability of owner

© EMC Publishing, LLC Entrepreneurship Partnership Types of partners – General – Limited Secret Silent Dormant Nominal

© EMC Publishing, LLC Entrepreneurship Partnership Advantages of partnership – More resources than sole proprietorship Capital ($) Expertise (skills) – Easy start-up – Limited sharing of profits and decision making

© EMC Publishing, LLC Entrepreneurship Partnership Disadvantages of partnership – Fewer resources than corporation Capital ($) Expertise (skills) – Possible disagreement between owners – Unlimited personal liability of owners

© EMC Publishing, LLC Entrepreneurship Corporation Advantages of corporation – More resources Capital ($) Expertise (skills) – Transferability of ownership – Limited involvement of owners if desired – Limited personal liability of owners

© EMC Publishing, LLC Stock Articles of Incorporation TAX Entrepreneurship Corporation Disadvantages of corporation – Lack of control Several owners – More difficult start-up Charter or articles of incorporation – Double taxation Corporate and personal

© EMC Publishing, LLC Entrepreneurship Limited Liability Company (LLC) Limited personal liability of owners Simpler tax situation than corporation Easier start-up than corporation Management flexibility Unlimited Liability

© EMC Publishing, LLC Which of the following is an advantage of both a corporation and an LLC? A.Unlimited capital B.Easy start-up C.Limited personal liability of owners D.No boss E.Double taxation

© EMC Publishing, LLC Which of the following is an advantage of both a corporation and an LLC? A.Unlimited capital B.Easy start-up C.Limited personal liability of owners D.No boss E.Double taxation

© EMC Publishing, LLC Which form of business would best suit someone who likes to work alone? Which form of business would best suit someone who is very skilled at making things but is not very skilled at bookkeeping and marketing? Is it worth the risk and headaches to start your own business?

© EMC Publishing, LLC