Question

1. which budget type assigns every dollar a purpose, including savings and expenses?

a) traditional budget
b) zero - based budget
c) 50/30/20 budget
d) pay - yourself - first budget
business organizations

1. what is one advantage and one disadvantage of a sole proprietorship? you get all the money but could also lose it all
2. which type of business structure offers limited liability and combines features of partnerships and corporations?

car insurance

1. what type of car insurance coverage pays for damage to your car caused by an accident, regardless of who is at fault? car insurance
2. why is uninsured/underinsured motorist coverage important?

simple and compound interest

1. if you invest $1,000 at 5% simple interest for 3 years, how much interest will you earn?
2. explain in your own words why compound interest allows money to grow faster than simple interest.

Explanation:

6.

A zero - based budget starts from zero and assigns every dollar to a specific purpose, whether it's for savings or expenses. Traditional budgets often build on previous budgets, 50/30/20 budget divides income into percentages for needs, wants and savings in a general way, and pay - yourself - first budget focuses on saving first but not on assigning every dollar to a purpose in the same detailed way as zero - based budget.

Advantage: The sole proprietor gets to keep all the profits as they are the sole owner. Disadvantage: They have unlimited personal liability, meaning they can lose not only business assets but also personal assets if the business fails or has debts.

A limited liability company (LLC) offers limited liability to its owners (members), and it combines features of partnerships (such as flexible management and tax treatment) and corporations (such as limited liability).

Answer:

B. Zero - Based Budget

7.