Chapter 3 Flashcards
Career
Your line of work
Portfolio Income
Income from investments, interest, and earnings, including the sale of an investment at a higher price than you paid for it.
Compensation
The total amount an employee is paid along with any benefits the employee receives.
Earned Income
Income produced by working at a job as an employee.
Profit
When income is greater than expenses.
Employee
A person who works for someone else in exchange for money.
Salary
Payment for work, usually calculated in periods of a week or longer.
Entrepreneur
A person who organizes and runs a business and assumes the risks associated with the business.
Take-Home Pay
The amount of money you get to take home after taxes and deductions.
Tuition
The charge or fee for going to a school/college/university.
Passive Income
Income earned from things you own such as houses, land or other buildings as well as money earned from books, software, or music you have written.
Wages
Payment for work, usually calculated in periods of an hour.
Withholding
A portion of an employees wages deducted for taxes.
