entrepreneur

Question 1

break even point

Answer 1

the minium 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

cash flow forecast

Answer 2

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 time period

Question 3

debt financing

Answer 3

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.

Question 4

demand

Answer 4

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

Question 5

equity financing

Answer 5

obtaining funds ti start or operate a business by selling shares of ownership in the business

Question 6

expense

Answer 6

product costs plus operating expenses

Question 7

interest

Answer 7

price being paid to a lender for using his or her money

Question 8

loss

Answer 8

total expenses minus total revenue expended, over a period of time, when total revenue is less than the total expenses; this is the net financial loss the business has experienced through its operation over that period of time

Question 9

market price

Answer 9

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

Question 10

operating expenses

Answer 10

costs that are required to cover the basic ongoing operation of the business such as rent, advertising and utilities for production of goods, operating expenses do not include product costs

Question 11

opportunity cost

Answer 11

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

Question 12

product costs

Answer 12

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 13

profit

Answer 13

total revenue minus total expenses; this is the net income a business that has earned over that period of time, after covering all expenses

Question 14

revenue

Answer 14

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

Question 15

start up costs

Answer 15

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

Question 16

supply

Answer 16

the quantity of a good or service sellers are willing to supply at various prices

Question 17

target market

Answer 17

a smaller portion of the overall main customer group for a particular business or industry. this smaller group is made up of potential customers who are believed to be most likely to purchase the good or service offered by the entrepreneur

Question 18

venture capitalist