Entrepreneur 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 during the same period of time
Debt financing
Obtaining funds to start or operate a business by borrowing money that has to be paid back to a lender
Demand
The quantity of a good or service buyers are willing to purchase at various prices
Equity financing
Obtaining funds to start or start a business by selling shares of ownership in the business; equity investors share in the profit
Expenses
Product costs plus operating expenses
Interest
Price being paid to the leader for using his or her money
loss
Total expenses minus total revenue expended, over a period of time, when total revenue is less than total expenses
Market price
That rice at which the quality that buyers are willing to buy is equal to the quantity that sellers are willing to supply
Operating expenses
Costs that are required to cover the basic, ongoing operation of the business such as rent, advertising and utilities.
Opportunity cost
The next best alternative use given up when resources are used for an item or activity
Product costs
Usually refers to the cost of the actual materials and 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; this is the net income a business has earned over that period of time, after covering all expenses
Revenue
Total dollar amount a business receives from the sale of its goods or service over a particular period of time.
Start-up costs
Total amount of money needed to get a business up and running
