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 the same period of time.
debt financing
obtaining funds to start operating by borrowing money that has to be paid back to the leader
demand
the quantity of a good or service buyers are willing to purchase
equity financing
obtaining funds top start or operate a business by selling shares of ownership in the business
expense
product costs plus operating expenses
interest
price being paid to a lender for using his or her money
loss
total expenses minus total revenue expanded over a period of time when the revue is less than the total expenses
market place
Name given to entire “arena” of places where goods and services are sold and purchased
operating expenses
cost that are required to cover the basic ongoing of the business such as rent
opportunity cost
the best alliterative use given up when resources are used for an activity
product cost
usually refers to the cost of the actual material and labor used to produce the goods that are sold to costumers
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 a sale of its goods
start-up cost
total amount of money needed to get a business up and running
