Social Security

question 62

Multiple Choice

Social Security

• A) collects taxes from current workers and invests this money to repay the workers when they retire.
• B) is based on the same principles as private insurance programs.
• C) is an intergenerational transfer program that takes money from current workers and transfers it to current retirees.
• D) is designed so that administrative decisions can be made independent of political concerns.

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Definitions:

Personal Liability

The responsibility of an individual to bear the loss or to repay the debt from their own assets.

Operating Agreement

A document that outlines the governance and operating procedures of a limited liability company (LLC) among its members.

LLC

Limited Liability Company, a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Organization

An entity, such as a company or society, formed by a group of people for a particular purpose.