Entrepreneur Flashcards
Break-even point
The minimum sales revenue or total units sold is needed for a business to be able to cover its own expenses and begin to make a profit.
Cash flow florecast
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 period of time.
Debt finacing
Obtaining funds to start or operate a business by borrowing money that has to be paid back.
demand
The quality of a goods 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 the business.
expense
Product cost plus operating expense
interest
Price being paid to the lender for using his or her money
loss
Total expenses minus total revenue expanded over a paid period of time when total revenue is less than the total expenses.
Market price
That price at which the quantity that buyers are willing to buy is equal to the qual to the quantity that sellers are willing to supply
operating expenses
The cost that are required to cover the basics, ongoing operation of the business such as rent, advertising, and utilities.
opportunity cost
The next best alternative is 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 revenue minus total expenses, over a period of time, when total revenue is greater than the total expenses.
revenue
Total dollar amount a business receives from the sale of its goods or services over s particular period of time.
Start-up cost
The total amount of money needed to get a business up and running.
