Entrepreneur Flashcards
break-even point
The minimum sales revenue or total units sold needed for a business to cover expenses and make a profit
cash flow forecast
Process of estimating the cash that will be coming into a business and coming out in same period of time
debt financing
Obtaining the funds to start/operate a business by borrowing money that has to be paid back to lender
demand
the quantity of a good or service buyers are willing to purchase
equity financing
Obtaining funds to start or operate a business by selling shares of ownership in the business
expense
Product cost as well as operating expenses
interest
Price being paid to lender for using his/her money
loss
Total expenses minus total revenue expended
market price
The price at which the quantity that buyers are willing to buy equal to quantity sellers are willing to supply
operating expenses
costs required to cover basic ongoing operation of a business
opportunity cost
The next best alternative use given up when resources are used for an item or activity
product costs
Usually refers to the cost of actual materials and labor used to produce good sold to customers
profit
Total revenue minus total expenses
revenue
Total dollar amount a businesses receives from sale of goods or services over a period of time
start-up costs
Total amount of money needed to get a business up and running
