2. Calculate the social security that should be withheld on an income of $10,000 of an employee?

The amount of social security that would be withheld from the person with the income of 10000 $ would be $620.

Explanation:

The percentage of income pulled for the social security fund of the government is 6.2%from the employee and the same amount taken from the employer

Social security is the amount taken up specifically for surveillance, policing and civic rules and regulations and their upkeep for the people. As such the rates are taken from both the firm and the employed.

So, a 6.2%rate out of $10000 would come out to be

6.2 * 10000/100

= $620

Which is the amount that is payable to the government for tax.

b. hiring workers

d. producing goods

e. distributing goods

f. buying materials

Explanation:

Capital is wealth set aside for the creation of more wealth, so capital invested in a business must be used exclusively for the purpose of the business in order to generate superior returns to investors via profit.

Payment for hiring workers is incurred for the purpose of the business, expenses on production activities are necessary for the purpose of the business, distribution and material purchases are all expenses for the purpose of generating returns to the investors. However, payment of taxes and repayment to investors cannot be paid from capital.