EPF Unit 4 College, Career and Other Paths

Vocabulary flashcards covering business types, taxation, labor relations, and student financial aid terms from the lecture.

salary

annual income that is usually paid on a monthly basis

hourly wages

a rate an employer agrees to pay a worker per hour worked

Sole Proprietorship

a business owned and managed by a single individual

Partnership

A business in which two or more persons combine their assets and skills

Corporation

A business owned by stockholders who share in its profits but are not personally responsible for its debts

stock

A share of ownership in a corporation.

liability

An amount owed by a business

Benefits

part of an employee's compensation over and above wages or salary. Usually in the form of health care or vacation days

charter

A legal document giving certain rights to a person or company

tax exempt

not subject to taxes

nonprofit organization

Institution that functions much like a business, but does not operate for the purpose of generating profits

Revenues

The financial resources of the government. The individual income tax and Social Security tax are two major sources of the federal government's revenue.

Expenditures

Federal spending of revenues. Major areas of such spending are social services and the military.

payroll tax/FICA

tax on wages and salaries to finance Social Security and Medicare costs

excise tax

Consumer tax on a specific kind of merchandise, such as tobacco.

progressive tax

A tax for which the percentage of income paid in taxes increases as income increases

regressive tax

A tax for which the percentage of income paid in taxes decreases as income increases

proportional tax/flat tax

a tax that takes the same percentage of each taxpayer's income

Gross Pay

the total amount of an employee's earnings before deductions and taxes are taken out

Net Pay

Amount of income left after taxes and deductions have been taken out.

labor union

An organization of workers that tries to improve working conditions, wages, and benefits for its members

collective bargaining

Process by which a union representing a group of workers negotiates with management for a contract

closed shops

an agreement in which a company agrees to hire union members only

open shop

a workplace where employees are not required to join a union

Right to Work State

State that has prevented a union or company from negotiating a contract that requires workers to join a union as a condition of employment

mediation

negotiation to resolve differences conducted by some impartial party

arbitration

settling a dispute by agreeing to accept the decision of an impartial outsider, the decision is FINAL

strike

to refuse to work in order to force an employer to meet certain demands

Lockout

a company tool to fight union demands by refusing to allow employees to enter its facilities to work

severance pay

a sum of money for which an employee is eligible upon termination

Externalities

economic side effects or by-products that affect an uninvolved third party; can be negative or positive

Return on Investment (ROI)

A ratio of profit to capital used, or a rate of return from capital.

For-Profit College

Refers to a type of college that is owned by a private company that makes a profit from your tuition and fees. Many for-profit colleges employ controversial practices and should be very carefully researched.

grant

federal student aid that does not have to be repaid

default

failure to pay back a loan

Subsidized Student Loan

This is a type of federal student loan on which the government pays the interest that accrues while a student is in school.

Unsubsidized Student Loan

a loan that starts charging interest from the time the loan is made

Deferrment

a period where the borrower has permission from the lender to not make payments on loan

grace period

Period of time after a borrower graduates, leaves school or drops below half-time enrollment where they are not required to make certain federal loan payments.