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

business plan

Answer 2

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.

Question 3

cash flow forecast

Answer 3

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.

Question 4

debt financing

Answer 4

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.

Question 5

demand

Answer 5

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

Question 6

entrepreneur

Answer 6

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.

Question 7

equity financing

Answer 7

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

Question 8

expenses (total)

Answer 8

product costs plus operating expenses.

Question 9

flyers

Answer 9

Short, inexpensive printed paper materials that are use for mass advertising of a good and/or service.

Question 10

good

Answer 10

something sold to customers that is physical (tangilble). A good can be “touched.”

Question 11

interest

Answer 11

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

Question 12

logo

Answer 12

a graphical design used by a business or organization to remind people of its name and objectives.

Question 13

loss

Answer 13

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.

Question 14

marketing appeals

Answer 14

approaches used to convince customers that they really need a good or service, such as attractiveness, quality, status, ect.

Question 15

market opportunity

Answer 15

a potential good or service that people want and are willing to pay for, and which others have overlooked.

Question 16

market price

Answer 16

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

Question 17

marketplace

Answer 17

name given to the entire “arena” of places where goods and services are sold and purchases.

Question 18

operating expenses

Answer 18

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.

Question 19

opportunity cost

Answer 19

the next best alternative use given up when resources are used for an item or activity.

Question 20

product costs

Answer 20

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 21

profit

Answer 21

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 22

revenue

Answer 22

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

Question 23

service

Answer 23

something sold to customers that is not physical and cannot really be “touched.”

Question 24

start-up costs

Answer 24

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

Question 25

supply

Answer 25

the quantity of a good or service sellers are willing to supply.

Question 26

target market

Answer 26

a smaller porion of the overall main customer group for a particular business or industry. this smaller group is mad up of potentail cusomers who are believed to be most likely to purchase the good or service offered by the entrepreneur.

Question 27

venture capitalists

Answer 27

organizations or individuals who professionally provide equity finacing for entrepreneurial ventures that are typically too risky to qualify for bank loans.