What Schools Will Never Teach You About Money By Robert T. Kiyosaki

FAQ 
I am in the S quadrant. What can I do to earn more and pay less in 
taxes, legally?
Professional Answer from Tom Wheelwright 
The most important thing to do in an S-quadrant business is to begin 
thinking and acting like a B-quadrant business. This includes hiring 
employees, increasing your investment in equipment and real estate and 
setting up your company as a B-quadrant entity. (An entity is simply your 
legal form of ownership. Most S-quadrant people are sole proprietorships 
or partnerships and these entities pay the most tax possible. Instead, look 
at B-quadrant-type entities such as limited liability companies, limited 
partnerships, S corporations and C corporations.)
The B Quadrant
“I’m looking for the best people.” 
These are the words of a B-quadrant person. B means big—500 
employees or more. A person in the B quadrant takes on tasks bigger 

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Chapter Two
Unfair Advantage
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B’s and I’s work to create or acquire assets, which is why they pay 
less in taxes. B’s and I’s focus here:
True Capitalist
All the shining stars in the B and I quadrants are capitalists, 
individuals who took their idea, created a business, and used OPM to 
grow their business. They spent their time thinking big and focusing 
on asset creation, which makes it easier to attract capital.
The tough part about being in the S quadrant is that there is very 
little OPM for growth capital because the entrepreneur’s business 
is small and the S may think too small. There is very little growth 
potential and too much risk to attract investment capital. That is why 
most in the S quadrant seek SBA (Small Business Administration) 
loans that are backed by the government. True capitalists invest in 
assets, not people.
Most schools do a pretty good job of training students for 
the E and S quadrants. For example, most universities have MBA 
programs for students who aspire to be president or CEO of a major 
corporation, a business that is already built. Most MBA students 
become employees rather than entrepreneurs because they do not 
understand the B quadrant. Most recent graduates of MBA programs 
do not know how to raise capital or how to build assets. The ability 
to raise capital is the most important skill of an entrepreneur. The 
inability to raise capital keeps most small businesses small. 
Traditional education has great law schools for people who want 
to be lawyers, and medical schools for those who want to be doctors. 
There are excellent trade schools training students to be chefs,