entrepreneur Flashcards
break-even point
The minimum sales revenue or total units sold for a business
cash flow forecast
process of estimating the cash that will be coming into a business.
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 amount of a good or service buyers are willing to purchase per unit of time
equity financing
obtaining funds to start or operate a business by selling shares of ownership
expences
product costs plus operating expences
intrest
Price being paid to the lender for using his or her money
loss
total expences minus total revenue expended, over a period of time.
market price
the price at which the quantinty that buyers are willing to pay
operating expenses
costs that are required to cover the basic ongoing operation of the business such as rent.
opportunity cost
the next best alternative use giving up when resources such as money
product costs
usually refers to the cost of the actual materials and labor used to produce the goods that are sold.
profit
total revenue minus total expenses, over a period of time, when total revenue is greater then total expenses
revenue
total dollar amount a business receives from the sale of its goods or services
start-up costs
the total amount of money needed to get a business up and running.
