Dollars and Sense: Do You Know How to Make Money?
Everybody wants more money, but few of us know the most efficient and effective ways to get more green in the bank. See if you have what it takes to be rich (or at least pass this quiz).
Which of the following figures is the best indication of the profitability of a business?
- profit margin
- cash flow
Which of the following is the correct formula for calculating profit margin?
- revenue / expenses
- profit - expenses
- (income - expenses) / revenue
According to Forbes, which of the following small businesses has the highest profit margin?
- certified public accountant
- insurance agent
Thirteen of the top 20 most profitable small businesses on Forbes' list were in the professional services category (CPAs, therapists, doctors). What is NOT one reason they are so successful?
- lots of repeat business
- highly educated staff
- low overhead
According to the Washington Post, which of the following small business sectors experienced the slowest growth in sales in 2012?
- land subdivision
- golf courses and bowling alleys
- dry cleaning
Which of the following small business sectors saw the largest sales growth in 2011, according to the Washington Post2?
- scientific and technical consulting services
- oilseed and grain farmers
- gas stations
Somewhat surprisingly, which small business sector held three different slots in the Washington Post's list of 10 fastest-growing businesses of 2012?
- IT consulting
- health care services
- machinery and metal manufacturing
True or false: 90 percent of new restaurants fail in their first year of business.
According to that same Cornell University study, what percentage of restaurants are out of business within 10 years of opening?
- 50 percent
- 70 percent
- 90 percent
The study also interviewed owners as to why their restaurants failed. What did the owners cite as the main reason?
- inability to balance family and work demands
- poor choice of location
- being undercapitalized
In 2009, the average profit margin for a full-service restaurant in America was below 2 percent. Which of the following franchise restaurants boasted an average net profit margin of 23 percent?
- Krispy Kreme Doughnuts and Coffee
- Jimmy John's Gourmet Sandwiches
Of a Forbes list of the 10 most profitable home-based business, which job sector grabbed five spots on the list?
- facilitators: real estate agents, stock brokers, consultants
- creators: artists, writers, interior designers
- sales: eBay, multilevel marketing
What was the average profit margin of a home-based stock and commodities broker in 2008?
- 6 percent
- 14 percent
- 36 percent
Education plays a critical role in your future earning potential, but college is expensive. According to PayScale, which of the following colleges ranked No. 1 for best return on investment in 2013?
- Harvard University
- Massachusetts Institute of Technology (MIT)
- Harvey Mudd College
According to Forbes' 2013 list of the highest starting salaries, how many of the top 10 spots were taken by engineering jobs?
What was the only job to make the top 10 that was not in a technical area?
Which of the following words means "to work a second or third job in addition to your full-time employment"?
Which of these got voted "worst job" according to CareerCast.com?
- newspaper reporter
- oil rig worker
What percentage of American millionaires are self-employed or own their own business, according to the book "The Millionaire Next Door"?
- 25 percent
- 66 percent
- 75 percent
What else is a common trait of self-made millionaires?
- They tend to drive expensive cars.
- Most of their wealth came from ordinary businesses.
- Only a small percentage is well-educated.