Capitalization

Question 1

the movement of money into and out of a business; the money that comes in from sales, investments, and loans minus the money that goes out to pay for expenses, bills, and other financial obligations

Answer 1

cash flow

Question 2

it is when a business makes more money than it spends

Answer 2

positive cash flow

Question 3

it is when a business spends more money than it makes

Answer 3

negative cash flow

Question 4

positive cash flow is _________________________, while negative cash flow can ____________________

Answer 4

good for business sustainability, can lead fo financial problems

Question 5

ensure _____________ and _____________ are on time

Answer 5

bill connection, payments

Question 6

stay on track and plan for ______________

Answer 6

emergencies

Question 7

list of all expenses that might be required for starting your business

Answer 7

start-up cost

Question 8

3 types of expenses in start-up cost

Answer 8

1 time expenses, ongoing expenses, investment in asset

Question 9

it is the point at which your sales will exactly cover your expenses

Answer 9

break-even point

Question 10

formula for break even point

Answer 10

fixed cost / (selling price per unit - variable cost)

Question 11

cost that a business pays whether you have sales or not

Answer 11

fixed cost

Question 12

cost that changes based on your number of sales

Answer 12

variable cost

Question 13

what to do to lower break-even point

Answer 13

• cutting costs
• adjusting your price