Entrepreneur Flashcards
break-even point
Minimum sales to cover expenses and make a profit.
cash flow forecast
Money coming 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 that buyers are willing to purchase at different prices.
equity financing
Obtaining funds to start or operate a business by selling shares of ownership in the business.
expense
Product costs plus operating expenses.
interest
Price being paid to the lender for using their money.
loss
Total expenses minus the total revenue expended over a period of time when total revenue is less than the total expenses.
market price
The price at which the amount the buyers are willing to by is equal to the amount that sellers are willing to supply.
operating expenses
Costs that are required to cover the basic ongoing operation of the business.
opportunity cost
The next best alternative use gave up when resources such as time or money are used for an item or activity.
product costs
Usually refers tot he cost of the actual materials and labor used to practice goods that are sold to customers.
profit
Total revenue minus total expenses over a period of time when the total revenue is greater than the total expenses.
revenue
Total dollar amount a business receives from the scale of its goods or services over a period of time.
start-up costs
Total amount of money needed to get a business up and running.
