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 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 business during the same period of time.
Debt financing
Obtaining funds to start or operate a business
Demand
The quantity (amount) of a good or service buyers are willing to purchase (per unit hour) at various prices
Equity financing
Obtaining funds to start or operate a business by selling shares of ownership in the business
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
Market price
That price at which the quantity that buyers are willing to buy is equal to the quantity that sellers are willing to supply
Operating expenses
Cost that are required to cover the basic, ongoing operation of the business such as rent
Opportunity cost
The next best alternative use given up when resources are used for an item or activity
Product cost
Usually refers to the cost of the actual materials and labor used to produce the goods that are sold to customers
Profit
Total revenue minus total expenses
Revenue
Total dollar amount a business receives from the sale of its goods or services over a particular period of time
Start-up cost
Total amount of money needed to get a business up and runnng
