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Strand3
Risk Management & Sources of Income
| Question | Answer |
|---|---|
| Transfer of Risk | A risk management control strategy that involves contractually transfering pure risk from one party to another. |
| Insurance | A private company or government agency that provides a guarantee compensation for specified loss, damage, illness, or death in return for payment of a premium. |
| Premium | What you have to pay for insurance. |
| Deductible | What you pay before insurance kicks in. |
| Co-Insurance | the percentage you pay after you have paid the deductible and before out of pocket max. |
| Liability | Protects you financially if you are responsible for any injury or property damage. |
| Collision | Coverage that helps pay to repair or replace your car if it's damaged in an accident with another vehicle or object. |
| Comprehensive | coverage that protects against damage to your vehicle caused by non-collision events that are outside of your control. This includes, theft, vandalism, glass and windshield damage, etc. |
| Outsourcing | A business practice in which services or job functions are hired out to a third party on a contract or ongoing bias. |
| Acceptance of Risk | When a business or individual acknowledges that potential loss from a risk is not great enough to warrant spending money to avoid it. |
| Investing Risk | Past performance is no guarantee of future result. |
| Mitigating loss | limiting the amount of money you have to pay in an accident or event. |
| Salary | Money paid at regular times for work or services. Predictable and secure. |
| Wages | A payment usually of money for labor or services usually according to a contract and on an hourly, daily, or piecework basis. |
| Gig Economy | "Side Hustles" short term- small contract freelance work |
| Commissions | A payment made to employees based on the value of sales achieved. |
| Tips | additional payment for goods or services. Especially if the job is well-done. |
| Benefits | Extra perks for a job to encourage someone to join your business, such as subsidized insurance coverage. |
| Entrepreneurship | the activity of setting up your own personal business taking on financial risks for your own profit. |
| Dividends | A sum of money paid regularly by companies to its shareholders out of it's profits. |
| Fixed Expenses | Expenses that are the same each time you pay them. |
| Variable expenses. | expenses that are different each month, such as groceries and gas. |
| Periodic expenses | Expenses that occur at irregular times, such as car maintenance or college tuition, books, and fees. |
| FAFSA | Federal Application For Student Aid |
| Scholarship | Financial Educational support based on merit. |
| Grant | Financial educational support based on need |
| Work Study | A college program that allows students to work-part time while going to school. |
| Return on Investment | The amount of money you profit from your college degree. Advanced degrees cost more originally, but you get paid a lot more down the road. |
| College/University | An institution of higher education and research which awards academic degrees in several academic disciplines. |
| Trade School | Any post-secondary educational institution that offers training for a specific job. |
| Apprenticeship | On-the-Job training. |
| Military Careers | Military will pay you to train and learn whatever topic of study you want in exchange for a few years of service. |
| Soft Skills | People skills, communication, etc. |
| Hard Skills | skills learned and developed over time. Like technician. |
| How many employees can a business have in order to be considered a "Small Business" | Fewer than 500 Employees. |
| Pay Stub | A document that's given to an employee each payday. It shows their total amount earned, less deductions for things like tax. |
| Federal Insurance Contributions Act | FICA, Requires that wage earners contribute a portion of their earnings to fund the Social Security and Medicare. |
| Gross Pay | An individual's total earning before taxes or other deductions. |
| Discretionary Spending | Money formally approved by Congress and the President during the appropriations process each year. |
| Net Pay | The amount of money you bring home after taxes and deductions are taken out of your paycheck |
| Mandatory Spending | Government Spending required by congressional laws and mandates |
| W-4 | an IRS document you complete for your employer to determine how much should be withheld from your paycheck for income taxes |
| I-9 | Used to verify the identity and employment authorization of individuals hired for employment in the United States. |
| W-2 | A wage and tax statement used to file a tax return that an employer must give to each employee every year by January 31st. |
| 1040 | a form used to file federal income taxes |
| Standard Dedcution | A portion of income that is not subject to tax and can be used to reduce a tax bill instead of itemizing deductions. |
| Deductions | Items or expenses that can reduce the taxes a person owes in a given year. |
| Dependent | Someone who relies on another person for financial support, such as for housing, food, clothing, necessities, and more. |
Created by:
bryson11
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