Entrepreneur

Question 1

break-even point

Answer 1

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.

Question 2

cash flow forecast

Answer 2

Process of estimating the cash that will be coming into a business and the cash that will be flowing out of the business and the cash that will be flowing out of the business during the same period of time.

Question 3

debt financing

Answer 3

Obtaining finds to start or operate a business by borrowing money that has to be paid back to the lender. The entrepreneur is responsible for paying back the debt and the interest even if there is no profit The lender typically has no ownership in the business.

Question 4

demand

Answer 4

The quantity of a good or service buyers are willing to purchase at various prices.

Question 5

equity financing

Answer 5

Obtaining funds to start or operate a business by selling shares of ownership in the business; equity investors share in the profits.

Question 6

expense

Answer 6

Product costs plus operating expenses.

Question 7

interest

Answer 7

Price being paid to the lender for using his or her money.

Question 8

loss

Answer 8

Total expenses minus total revenue expected, over a period of time, when total revenue is less than the total expenses; this is the net of financial loss the business has experiences through its operation over that period of time.

Question 9

market price

Answer 9

That price at which the quantity that buyers are willing to buy is equal to the quantity that sellers are willing to supply.

Question 10

operating expenses

Answer 10

Costs that are required to cover the basic, ongoing operation of the business such as rent, advertising and utilities. or production of goods, operating expenses do not include product costs.

Question 11

opportunity cost

Answer 11

The next best alternative use give up when resources are used for an item or activity.

Question 12

product costs

Answer 12

Usually refers to the cost of the actual materials and labor used to produce the goods that are sold to customers. Also called cost of goods sold

Question 13

profit

Answer 13

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.

Question 14

revenue

Answer 14

Total dollar amount a business receives from the sale of its goods or services over a particular period of time.

Question 15

start-up costs

Answer 15

Total amount of money needed to get a business up and running.

Question 16

supply

Answer 16

The quantity of a good service sellers are willing to supply at carious prices.

Question 17

target market

Answer 17

A smaller portion of the overall main customer group for a particular business or industry. The smaller group is made up of potential customers who are believed to be most likely to purchase the good or service offered by an entrepreneur

Question 18

venture capitalist

Answer 18

Organizations or individuals who professionally provide equity financing for entrepreneur ventures that are typically too risky to qualify for bank loans.