6. which budget type assigns every dollar a purpose, including savings and expenses?\na) traditional…
6. which budget type assigns every dollar a purpose, including savings and expenses?\na) traditional budget\nb) zero - based budget\nc) 50/30/20 budget\nd) pay - yourself - first budget\nbusiness organizations\n7. what is one advantage and one disadvantage of a sole proprietorship? you get all the money but could also lose it all\n8. which type of business structure offers limited liability and combines features of partnerships and corporations?\ncar insurance\n9. what type of car insurance coverage pays for damage to your car caused by an accident, regardless of who is at fault? car insurance\n10. why is uninsured/underinsured motorist coverage important?\nsimple and compound interest\n11. if you invest $1,000 at 5% simple interest for 3 years, how much interest will you earn?\n12. explain in your own words why compound interest allows money to grow faster than simple interest.
Answer
6.
Brief Explanations:
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.
Answer:
B. Zero - Based Budget
7.
Brief Explanations:
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.
Answer:
Advantage: Keeps all profits. Disadvantage: Unlimited personal liability.
8.
Brief Explanations:
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:
Limited Liability Company (LLC)
9.
Brief Explanations:
Personal Injury Protection (PIP) or no - fault insurance pays for damage to your car and medical expenses regardless of who is at fault in an accident.
Answer:
Personal Injury Protection (PIP) or no - fault insurance
10.
Brief Explanations:
Uninsured/underinsured motorist coverage is important because if you are in an accident with a driver who has no insurance or insufficient insurance, this coverage can pay for your damages and injuries, protecting you from financial losses.
Answer:
Protects from financial losses if hit by uninsured/underinsured driver.
11.
Explanation:
Step1: Recall simple - interest formula
The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.
Step2: Convert the percentage to decimal
Given $r = 5%=0.05$, $P=$1000$, and $t = 3$ years.
Step3: Calculate the interest
Substitute the values into the formula: $I=1000\times0.05\times3$. $I = 150$
Answer:
$150$
12.
Brief Explanations:
With simple interest, interest is only calculated on the original principal amount. With compound interest, interest is calculated on the principal and also on the accumulated interest from previous periods. So, over time, more money is earning interest, causing the money to grow faster.
Answer:
Compound interest is calculated on principal and accumulated interest, so more money earns interest over time.