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.
business plan
a planning document for a new entrepreneurial venture that helps other people and the entrepreneur understand the business idea, the market opportunity, and the resources and steps needed to create the business and operate it successfully.
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 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. the entrepreneur is responsible for paying back the debt and interest even if there is no profit. the lender typically has no ownership in the business.
demand
the quantity of a good or service buyers are willing to purchase at various prices.
entrepreneur
one who identifies market opportunities others have overlooked and who acts on those opportunities to create new goods, services, and the business ventures based on them.
equity financing
obtaining funds to start or operate a business by selling shares of ownership in the business; equity investors share in the profits.
expenses (total)
product costs plus operating expenses.
flyers
Short, inexpensive printed paper materials that are use for mass advertising of a good and/or service.
good
something sold to customers that is physical (tangilble). A good can be “touched.”
interest
price being paid to the lender for using his or her money.
logo
a graphical design used by a business or organization to remind people of its name and objectives.
loss
total expenses minus total revenue expended, over a period of time, when total is less than the total expenses’ this is the net finacial loss the business has experienced throuch its operation over that period of time.
marketing appeals
approaches used to convince customers that they really need a good or service, such as attractiveness, quality, status, ect.
market opportunity
a potential good or service that people want and are willing to pay for, and which others have overlooked.
market price
that price at which the quantity that buyers are willing to buy is equal to the quantity that sellers are willing to supply.
marketplace
name given to the entire “arena” of places where goods and services are sold and purchases.
operating expenses
costs that are required to cover the basic, ongoing operation of the business such as rent, asvertising and utilities. for production of goods, operating expenses do not include product costs.
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. also called cost of goods sold.
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 reveives from the sale of its goods or services over a particular period of time.
service
something sold to customers that is not physical and cannot really be “touched.”
start-up costs
total amount of money needed to get a business up and running.
