enterepreneur Flashcards
break-even point
the 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
debt finacing
Obtaining funds to start or operate a business by borrowing money that has to be paid
demand
the quantity of a or service buyers are willing 4to purchase at various prices.
equity financing
obtaining funds to start or operate a business equity investors share in the profits
expense
product costs plus operating expenses
interest
price being paid to the lender for using his or her money
loss
total expenses minus total revenue expended over a period of time when total revenue is less than the total expenses.
market price
that price at which the quantity that all buyers are willing to buy
operating expenses
costs that are reqired to cover the basics on going of the business such as rent
opportunity cost
the next best alternative use given when resources are used for an item or activity
product costs
Usally refers to the costs of actual materials and labor
profit
total revenue minus total expenses over a period of time
revenue
total amount a business receives from the sale of its goods or services perticular period of time
start-up costs
total dollar amount of money needed to get a business up and running
