Personal Finance Chapter 2

What do you think? Discussion 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 © EMC Publishing, LLC

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

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

Starting a Job Form W-4 Or leave blank 1 1 - - - - Manually advance through each line to see sample entries - 2 © EMC Publishing, LLC

Starting a Job Form W-4 123 45 6789 Today’s Date x 2 5.00 John A. Smith 123 45 6789 x 1315 Main Street Friendly, MA 12345 2 5.00 Manually advance through each line to see sample entries John A. Smith Today’s Date © EMC Publishing, LLC

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

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

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

Develop Good Working Relationships Tips 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

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

Expectations Employee 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

Take-Home Pay Where Did My Check Go? Gross pay (including overtime) Deductions Net pay Paycheck Stub Animation is in sections tied to bullets – last math problem will be last click $830.00 -$154.28 ------------------- $675.72 © EMC Publishing, LLC

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

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

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

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

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 © EMC Publishing, LLC

What do you think? Discussion 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 © 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

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

You have to work long hours to succeed. You are your own boss. Which of the following is not an advantage of starting your own business? You have to work long hours to succeed. You are your own boss. You receive all the profits from your work. Success brings financial security. 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 General Partnership – each partner carries unlimited liability Limited Partnerships – some partners have limited liability – one has to be a general partner Secret – play an active role but not identified to public Silent – not active in operation but share in profit Dormant – not active and not known to public Nominal - not really a partner but allow public to believe they are by actions and works © 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

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

Entrepreneurship Limited Liability Company (LLC) Unlimited Liability Limited personal liability of owners Simpler tax situation than corporation Easier start-up than corporation Management flexibility © EMC Publishing, LLC 32

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

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

What do you think? Discussion 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 © EMC Publishing, LLC

The End © EMC Publishing, LLC