Entrepreneur Flashcards
Break-even point
The minimum sales or total units sold needed for a business to be able to cover its own expenses and begin to make a profit
Debt financing
obtaining funds to start a business by borrowing money that has to be paid back.the entrepreneur is responsible for paying back the debt and interest even if there is no profit. usually the lender has no relationship with the business.
Cash flow forecast
process of estimating the cash flowing in and out the business during the same period of time.
Demand
The quantity of a good service buyers are willing to purchase t various prices.
Equity financing
Expense
Something so the customers that is physical a good can be touched
Interest
Ice being paid to the lender for using his or her money
Loss
Total expenses - total revenue expended over a period of time when total revenue is less than total expenses this is the net Financial loss of the business has experienced throughout the operation over that period of time
Market price
Name given to the entire Arena of places and sources where goods and services are sold and purchased
Operating expenses
Costs that are required to cover the basic ongoing operation of the business such as rent advertising and utilities for a 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 actual materials and labor used to produce the goods that are sold to customers also called cost of goods sold
Profit
Turtle Revenue minus total expenses over a period of time when a total revenue is greater than total expenses this is the net income a business has earned over that period of time after covering all expenses (except taxes)
Revenue
Turtle dollar amount a business receives from a sale of its goods and services over a particular period of time
Start-up costs
The total amount money needed to get a business up and running
