entrepreneur Flashcards
break even point
the minimum sales revenue or total units sold needed for a buisness to be able to cover its own expenses and begin to make a profit
cash flow forecast
process of estimating the cash that will be coming into a buisness and the cash that will be flowing out of the buisness during
debt financing
obtaining funds to start to operate a business by borrowing money that has to be paid back to a lender. The entrepreneur is responsible for paying back the debt and interest even if there is no profit. The leader typically has no ownership in the business.
demand
The quanity (amount) of a good or service buyers are willing to purchase (per unit of time) 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 he profits.
expense
Product costs plus operating expenses.
interest
Price being paid to the lender for using his or her money.
loss
Total expenses minus total revenue expended, ofer a period of time, when total revenue is less than the total expenses; this is the net financial loss the business has expericed through its operation over that period of time.
market price
A potential good or service that people want and are willing to pay for, and which others have overlooked.
operating expenses
Costs that are required to cover the basic, ongoing operation of the business such as rent, advertising and utilities. For 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 acutal 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 receives 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 quantity (amount) of a good or service sellers are willing to supply (per unit of time) at various prices.
target market
A smaller portion of the overall main customer group for a particular business or industry. The smaller group is made up of potential customers who are believed to be most likely to purchase the good or service offered by the entrepreneur.
venture capitalist
Organizations or individuals who professionally provide equity financing for entrepreneurial ventures that are typically too risky to qualify for bank loans.
