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 estimating the cash that will be coming into a business and the cash that will be flowing out of the business during that same time period.
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 is willing to purchase at various prices.
equity financing
obtaining funds to start or operate a business by selling shares of ownership in that business;
expenses
product cost plus operating expenses.
interest
price being paid to the lender for using his or her money.
loss
total expenses minus total revenue expended.
maket price
that price at which the quantity that buyers are willing to buy.
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 gave 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 good that is sold to customers.
profit
total revenue minus total expenses, over a period of time when total revenue is greater than total expenses.
revenue
total dollar amount a business receives from the sale of its goods or services.
start-up cost
the total amount of money needed to get a business up and running.
