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Home Business Quiz AnswersTo find out how you did on the Home Business Quiz, Click the "Back" button on your browser, Count the number of "C" answers you provided in the Quiz, and Come back to this page.
If your home business quiz score was:
< 10 Correct. Congratulations, you have probably just started your research into a home business. We recommend you continue your research with a more fundamental understanding of how and why a home business is so financially powerful -
10-20 Correct. You have clearly done some research and probably have a good idea of what you are looking for in a home business. We recommend you continue your research with a more detailed look at available options -
> 20 Correct. Congratulations, you have a very strong grasp on the financial principles of a home business and you have a good grasp of the available options. We recommend you continue your research by learning how to specifically analyze a home business and our recommendations based on that analysis -
Here's the answers to the Home Business Quiz with source and documentation. Plus, some more leads to help you continue your research.
1) After 40 years of working, how many Americans have enough money to comfortably retire?
A. 35% According to the Federal Bureau of Labor Statistics, after 40 years of working, here's how the American population stacks up financially:
- 1% are Wealthy Best-selling author, Robert Kiysoaki, calls this the 40 Year "Rat-Race" Plan. Work for 40 years like a rat on a wheel - financially going nowhere. The other option is the 4 Year "Fast-Track" Plan. A legitimate home based business offers the opportunity to achieve financial independence in only 4 years. Learn more about what Starting a Small Home Based Business can do for you.
2) How many Americans do not have a detailed retirement plan?
A. 15% According to Money Magazine, only 39% of Americans even have a financial plan. As Benjamin Franklin once said, "Failing to prepare is preparing to fail". For some more research on how a home business can factor into a solid financial plan, go here: Small Business Retirement Plan
3) Assume one has $250,000 saved for retirement. If retirement spending rises with inflation (e.g. maintain standard of living), what are the chances those savings will last 30 years into retirement?
A. 65% According to calculators devised by T. Rowe Price, a household with a $600,000 nest egg has a 3-in-10 chance of running out of money within 20 years. However, that assumes no additional residual income coming in during your retirement. The amount of money you have saved up for retirement is not nearly as important as the residual cash flow that is coming in. The powerful concept of a Home Based Business Residual Income - that a home business provides.
4) How many Americans have more than $20,000 in their 401(k) plan (for those who even have a 401(k) plan)?
A. 82% According to a Washington Post article ("For Many 401(k) Catch-Up Won't Be An Easy Game"), the Employee Benefits Research Institute (EBRI) found that 44% of 401(k) balances were less than $10,000. Additionally, 14% were less than $20,000. According to Leslie Wayne of the NY Times, only 16% of Americans even have a 401(k) at all. Only 6% of Americans have more than $20,000 in a 401(k) plan. Learn how you can leverage a Legitimate Home Business Opportunity so you won't care about a 401(k) plan.
5) What is the current statutory limit for drawing Social Security benefits?
A. 60 The federal government has risen the age at which you can start drawing Social Security benefits. Why? So you won't be able to recoup your investment (decades of paying taxes into the system). Follow this link to learn some frightening information on US Government Social Security.
6) What is the average net worth of an American household at retirement?
A. $432,000 Source: Money Magazine (Dec 2004). With a $600,000 nest egg, the average American has a 30% chance of running out of money within 20 years of retirement. And most Americans have nowhere near that much saved up. Home businesses owners don't care as much about the size of their nest egg because they have a residual income. Our Home Based Business Opportunity Guide can show you where to start.
7) Assume a 65-year old American lives to age 90. How much will that person need to cover medical expenses?
A. $50,000 According to the Washington Post (21 Jun 2005), the cost of health care and prescription drugs jumped 17% and have increased 8.2% a year since 2003. That's more than double the average annual inflation rate. Find out how a home business residual income can become your own Individual Pension Plan .
8) What is the small business failure rate in America during the first 2 years?
A. 90% According to the Small Business Administration, the small business failure rate in America is 30% within the first two years. The good news is that there are reasons why people fail in business. Once you know those reasons, your chance ofsuccess increase dramatically. Go here to learn the Reason Business Failure occurs.
9) Most people could live their same lifestyle during retirement with only ______ of their current income, if they were debt-free.
A. 85% According to the Financial Freedom Society , getting totally out of debt is the single biggest step we can take to reduce the need for income in retirement - without reducing our lifestyle. Most people could live their same lifestyle on 40% to 60% less income, if they were debt-free. Think about it, what if you had no mortgage, no car payments, no credit card debt?
10) What is the average credit card balance of the typical US household?
A. $2,700 According to Money Magazine (Sep 2005), that's average credit card debt. That does not include "good" consumer debt such as: mortgage, student loans, or car payments. Most Americans have Financial Slavery habits instead of the Financial Freedom habits provided by a home business. Why Stock Market Crash will happen - and what you can do about it with a home business.
12) In the last decade, how much did the average net worth of households led by self-employed business people rise?
A. 24% According to the Federal Reserve Board, the net worth of self-employed business people rose 5 times faster than employee households in the period 1992-2001. Make sure you look only at legitimate home business opportunities and not an Online Business System Scam .
13) In the last decade, how much did the average net worth of households led by employees rise?
A. -2% It is possible to build wealth working a job as an employee. We call that the 40-Year Rat Race Plan. It's ironic that many people consider starting a business as very risky. Yet, they do not consider how risky it is to work for 40 years and then to find out at age 65 that they don't have enough money to retire. Compare the two plans:
- 40 Year Plan: Work because you have to and hope you have enough.
14) In 2001, what was the average net worth of a self-employed business-led household?
A. $432,000 According to the Federal Reserve Board, during the period 1992-2001 the average net worth of households headed by self-employed business people rose from $714,500 to $1.3 million - a 68% increase in 9 years. That rate is 5 times more than the increase for employee-led households.
15) In 2001, what was the average net worth of an employee-led household?
A. $182,000 According to the Federal Reserve Survey of Consumer Finances, the net worth of a self-employed business owner is 6 times that of an employee. As best-selling author Robert Kiyosaki says it: "How much can you sell your job for?"
16) When taking home business tax deductions into account, how much more efficient can a home business be compared to taking a job (efficiency defined as a measure of time investment and income received)?
A. 0.8 times Let's face it: Tax laws favor business people. As an employee - you have VERY LIMITED tax deduction options. As a business owner - you have SIGNIFICANT tax deduction options. Look here for a side-by-side comparison of Taking a Job vs. Starting a Home Business: Home Business Tax Information .
17) Over a three year period, a home business can bring in ______ times more cash than a job and require _______ the time investment of a job.
A. 0.8, 1.2 How you pay taxes is very important. The federal government gives significant tax benefits to running a legitimate business. A home business can bring in 3.5 times more income with 20% the time investment required for a job. And that's just the beginning. Look at our Home Business Work Opportunity Resource Center for more information.
18) How much capital investment is required to start a popular franchise?
A. $1,000 A franchise is an extremely powerful system to start a business. Unfortunately, the very large investment requirement is the biggest Disadvantage of a Franchise , among others.
19) How much capital investment is required to start a legitimate home business?
A. $10,000 For a short overview of different home business models go here: Find Home Business Work Opportunity .
20) How much of a time investment per week is required to run a legitimate home business?
A. 20-24 hours Of course, the more time invested the faster profits will start to flow. The important thing, though, is the freedom to work when you want - based on your schedule, not someone else's.
21) Which of the following home business models requires the most "computer skills"?
A. Network Marketing Internet Marketing, by definition, requires an element of proficiency with a computer. However, with the technology available today, you would be surprised how little "geekery" you need to know to build a cash-generating website. Review the advantages and disadvantages of Small Business Internet Marketing Online .
22) Which of the following home business models does not require you to create your own product or service?
A. Affiliate Reseller Program Like network marketing, with an Affordable .com Affiliate Program , you don't have to waste time and effort trying to come up with a new product or service.
23) Which of the following home business models has all the strengths of a franchise without the high money investment?
A. Internet Marketing Network Marketing is often referred to as "the people's franchise". Bestselling author Robert Kiyosaki says: "If I had to do it all over again, I would have started a Network Marketing business". Find out why: MLM Income Leverage .
24) Which of the following home business models provides a comprehensive and detailed training program (without any extra cost)?
A. Internet Marketing The main strength of network marketing is a fully tailored training program with REAL people that have a vested and personal interest in your success. Learn how an MLM Home Business Income works.
25) Which of the following is the most important factor for success in a legitimate home business?
A. Prior Experience With a home business, it doesn't matter how old you are, what color you are, how many diplomas you have, or how much experience you have. You only need a Good Attitude - A Willingness to Learn - which is one of the Four Home Business Success Cornerstones .
Regardless of how well you did on the home business quiz, the FREE Perfect Business CD (by Robert Kiyosaki) or the FREE Unstoppable Income CD (by Leaders Club) will take you to the next level.
want to spend my life working for it." -Quote from Rich Dad's CASHFLOW Quadrant
The Perfect Business CD is a 25 minute
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