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
Cash flow forecast
Process of eliminating 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
demand
The quantity of a good or service buyers are willing to purchase at various prices.
equity financing
Obtaining funds to start or operate a business by selling shares of ownership in the business.
expense
Product costs plus operating expense
interest
Price being paid to the leader for using his or her money
loss
Total expenses minus total revenue extended over a period of time,when total revenue is less than the total expenses
market price
Name given to the entire arena of places where goods and services are sold and purchased.
Operating expense
Costs that are required to cover the basic, ongoing operation of the business such as rent, advertising and utilities.
Opportunity cost
The next best alternative use 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 to produce the goods that are sold to customers
profit
Total used to produce the goods that expenses, over a period of the, when total revenue is greater that total expenses
revenue
Total dollar amount a business receives form the scale of its goods or services over a particular period of time
start-up costs
Total amount of money needed to get a business up and running
supply
The quantity of a good or service sellers are willing to supply at various prices
target Market
A smaller portion of the overall main customer group for a particular business or industry
Venture capitalist
Organizations or individuals who professionally equity financing for entrepreneurial ventures that are typically too risky qualify for bank loans
