Entrepreneur Flashcards
Break-even point
The minimum sales revenue or total units sold needed for a business
cash flow forecast
the process of estimating the cash that will be coming into a business and cash that will be flowing out of the business at that same period of time
debt financing
Obtaining funds to stat or operate a business by borrowing money
demand
the quantity of a good or service buyers are willing to purchase
equity financing
Obtaining funds to start or operate a business by selling shares of ownership in the business
expanse
Product costs plus the operating expenses
interest
Price bring paid to the lender for using his or her money
loss
total expenses minus total revenue expended
Market price
a price at which the quantity that buyers are willing to buy
operating expanses
costs that required to cover the basic ongoing operation of the business such as rent
opportunity cost
the nest best alternative use given up when resources such as time or money are used for an item or activity
product cost
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 expense
revenue
total dollar amount a business receives
Start-up cost
total amount of money
