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 profits
Cash Flow Forecast
Process of estimating the cash that will be flowing out of the business during the same period of time.
Debt Financing
Obtaning Funds To Start or operate a business by borrowing money that has to be paidback to a lender
Demand
The quantity (amount) of a good or service buyers that are willing to purchase Per unit at a time at various prices.
Equity financing
Obtaining funds to start or operate a business by selling shares of ownership in the buisness
Expense
Product cost plus operating expenses.
Intrest
Price being paid to lender for using his or hers money
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 quanity that sellers are willing to supply.
Operating Expenses
The cost that is required to cover the basics ongoing operation of the business such as rent advertising and utilities.
Opportunity cost
The next best alternative use is given up when resources are used for an item or activity.
Product cost
usually refers to the cost of the actual materials and labor used 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 recives from the scale of its goods or services over a particular period of time.
Start-Up-Cost
The total amount of money needed to get a business up and running.
