Entrepreneur Flashcards
break-even point
The minimum sales to cover expenses and make a profit
cash flow forecast
Money coming in and going out of the business
debt financing
Borrowing money to run your business that must be paid back
demand
The amount of goods or services the buyer 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; 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 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.
market price
That 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
Costs that are required to cover the basic, ongoing operation of the business such as rent, advertising, and utilities. For the production of goods, operating expenses do not include product costs
opportunity cost
The next best alternative use given up when resources( such as time or money) are used for an item or 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 the cost of goods sold.
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 a certain time
start-up costs
the total amount of money needed to get a business up and running
