Dollars and Sense: Do You Know How to Make Money?

Staff

4 Min Quiz

Which of the following figures is the best indication of the profitability of a business?

If you want to compare the money-making potential of two or more businesses, profit margin is the best indicator.

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Which of the following is the correct formula for calculating profit margin?

Profit margin is expressed as a percentage. The higher the percentage, the more efficient the business model is at making money.

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According to Forbes, which of the following small businesses has the highest profit margin?

CPAs have an average pretax profit margin of 16.5 percent.

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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?

The main reasons cited for success were relatively low overhead, consistent demand for services and lots of repeat business -- people tend to not switch their doctors, accountants and therapists frequently.

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According to the Washington Post, which of the following small business sectors experienced the slowest growth in sales in 2012?

Sales were down 2.51 percent in 2012 for small businesses that subdivide and sell land for home construction projects.

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Which of the following small business sectors saw the largest sales growth in 2011, according to the Washington Post2?

Droughts lowered yields in corn and other grains, causing prices to spike. Farmers with grain to sell saw a 22.43 percent growth in sales in 2012.

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Somewhat surprisingly, which small business sector held three different slots in the Washington Post's list of 10 fastest-growing businesses of 2012?

Machine shops, small parts manufacturers, companies that make gears and levers, and metal fabricators were all in the top 10 businesses that experienced the highest sales growth in 2012.

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True or false: 90 percent of new restaurants fail in their first year of business.

It's a common myth, but the real first-year failure rate is closer to 30 percent, according to a Cornell University study.

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According to that same Cornell University study, what percentage of restaurants are out of business within 10 years of opening?

Just 30 percent of new restaurants survive a decade or more.

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The study also interviewed owners as to why their restaurants failed. What did the owners cite as the main reason?

Most of the owners attributed their failure to family demands, like death and divorce. Successful owners, the study noted, were able to balance work and family demands well -- or were not married.

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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?

Average gross sales at each Jimmy John's franchise were $688,313 in 2009. Then again, the average initial investment in a Jimmy John's franchise was $383,000.

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Of a Forbes list of the 10 most profitable home-based business, which job sector grabbed five spots on the list?

Facilitators can offer premium services to both individual and corporate clients from the comfort of a home office.

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What was the average profit margin of a home-based stock and commodities broker in 2008?

With a profit margin of 14 percent, stock and commodities brokers topped the list of most profitable home-based businesses in a Forbes 2008 list.

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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?

PayScale estimated that the average Harvey Mudd grad had a ROI of $2,217,000 over 30 years. The college is popular with engineering majors.

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According to Forbes' 2013 list of the highest starting salaries, how many of the top 10 spots were taken by engineering jobs?

Six types of engineering jobs made the list. Computer engineering topped it with an average starting salary of $70,400.

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What was the only job to make the top 10 that was not in a technical area?

Finance was the only nontechnical job to make the top 10 (starting salary $57,300). If you answered "archaeology", keep dreaming.

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Which of the following words means "to work a second or third job in addition to your full-time employment"?

Moonlighting as a freelancer or independent contractor has become a popular way to make good money on the side, especially for creative professionals who can work from home.

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Which of these got voted "worst job" according to CareerCast.com?

Long hours, low pay and declining employment all conspired to rank "newspaper reporter" as even less appealing than lumberjack and oil rig worker. The Web site did point out they were only referring to print journalists.

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What percentage of American millionaires are self-employed or own their own business, according to the book "The Millionaire Next Door"?

Two-thirds of all self-made millionaires are self-employed or owned a business.

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What else is a common trait of self-made millionaires?

Most of these millionaires make their money in businesses that would be considered "normal or dull," such as welding contractor, pest controller or rice farmer. But as a group, they tend to be well-educated and drive inexpensive cars.

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About This Quiz

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).

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