Entrepreneur Flashcards
Break-even point
Minimum sales to cover expenses and make a profit
Cash flow forecast
Money coming in and out of the business
Debt financing
Borrowing money to run your business that must be paid back
Demand
The amount of a good or service buyers are willing to purchase at various prices
Equity financing
Obtaining funds to start or operate a business by selling shares of ownership of the business; equity investors share in the profits
Expense
Product cost plus operating expenses
Interest
Price being paid to the lender for using his or her money
Loss
Total expense minus total revenue expended, over a period of time, when total revenue is less than the total expenses
Market price
The price at which the quantity that buyers are willing to buy (per unit of time) is equal to the quantity that sellers are willing to supply
Operating expenses
Opportunity cost
The next best alternative use given up when resources (such as time or money) are used for an item of activity
Product costs
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
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 recieves from the sale of its goods or services over a particular period of time
Start-up costs
Total amount of money needed to get a business up and running
Supply
The amount of a good or service sellers are willing to supply at various prices
Target market
A smaller portion of the overall main customer group for particular business or industry Potential customers believed to be more likely to purchase the good or service
Venture capitalist
