enterapenuer Flashcards
Break-even point
minimum sales revenue or total units sold needed for a business to be able to cover its own expenses and begin to make a profit
cash flow forecast
process of estimating the cash that will be coming into a business and the cash that will be flowing out of the business during the same time period
debt financing
obtaining money to run your business that has to be paid back
demand
the amount of a good or service buyers are willing to purchase at various prices
equity financing
Obtaining funds to start or operate
a business by selling shares of ownership in the business; equity investors share in the profits
expense
Product costs plus operating expenses
interest
Price being paid to customers that is physical
loss
Total expenses minus total revenue expended over a period of time
market price
That price at which the quantity that buyers are willing to buy is equal to the quantity that sellers are willing to sell
operating expenses
Costs that are required to cover the basic, ongoing operation of the business such as rent, advertising utilities
opportunity cost
The next best alternative use is given when resources are used for an item or activity
product costs
usually refers to the cost of the actual materials labor used to produce the goods that are sold to customers
profit
Total revenue minus total expenses, over a period of time, when total revenue is greater than total expenses
revenue
Total dollar amount a business receives from the sale of its goods and services over a particular period of time
start-up costs
The total amount of money needed to get a business up and running
