entrepreneur Flashcards
Break-even point
The minimum sales to cover expenses and make a profit.
Cash flow forecast
Profit 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
borrowing money to run your business that must be paid back.
demand
The amount of money a consumer is willing to pay for a good or service.
equity financing
Obtaining funds to start a business by selling shares of ownership.
expense
Product costs plus operating business.
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 expenses.
market price
That price at which the quantity that buyers are willing to buy is equal to the quantity that buyers 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 given up when resources are used for an item or activity.
product costs
Refers to the cost of the actual materials and labor used to produce the goods that are sold to customers.
profit
When total revenue is greater than expenses.
revenue
Total dollar amount a business receives from the sale of its goods or services over a particular period of time.
start-up costs
The total amount of money needed to get a business up and running.
