Entrepreneur

Question 1

break-even point

Answer 1

The minimum sale revenue or total units sold needed for a buisness to be able to cover its own expense and begin to make profit.

Question 2

cash flow forecast

Answer 2

process of estimating the cash that will be coming into a buisness and the cah the will be flowing out of the buisness during the same period of time.

Question 3

Debt financing

Answer 3

Obtaining funds to start or operate a buisness by borrowing money that has to be paid back to a lender. The entreprenuer is responsible for paying back the debt and intrest even if there is no profit. The lender typically has no ownership in teh buisness.

Question 4

expense

Answer 4

product cost plus operating expenses.

Question 5

interest

Answer 5

Price being paid to the lender for using his or her money.

Question 6

loss

Answer 6

Total expenses minus total revenue. When revenue is less.

Question 7

market price

Answer 7

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

Question 8

demand

Answer 8

The quantity of a good or service buyers are willing to purchase.

Question 9

equity financing

Answer 9

Obtaining funds to start or operate a business by selling shares of ownership in the buisness equity investors share in the profits.

Question 10

Operating expenses

Answer 10

Costs that are required to cover the basic, ongoing operation of the buisness such as rent, advertising and utilities. For production of goods, operating expenses do not include product cost.

Question 11

opportunity cost

Answer 11

The next best alternative use given up when resources(such as time or money) are used for an item or activity.

Question 12

Product cost

Answer 12

Usually reffers to the cost of 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, over a period of time, when total revenue is greater that total expenses this is the net income a buisness has earned over that period of time, after covering all expenses (except taxes).

Question 14

revenue

Answer 14

Total dollar amount a buisness recieves from the sale of its goods or services over a particualr period of time.

Question 15

start-up costs

Answer 15

Total amount of money needed to get a buisness up and running.

Question 16

supply

Answer 16

The quantity of a good or service sellers are willing to supply (per unit of time) at various prices.

Question 17

target market

Answer 17

A smaller portion of the overall main customer group for a particular buisness 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 entreprenuer.