Entrepreneur Flashcards
break-even point
Money flowing in and out of business
cash flow forecast
The calculation of the cash that will be leaving the business.
debit financing
Obtaining funds to start or operate a business by borrowing money that has to be paid back to the 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 inn the business.
expense
Product costs plus operating expenses.
intrest
price being paid to a lender for using his or her money.
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.
loss
Total expenses minus total revenue expended, over a period of time, when total revenue is less than the total expenses
operating expenses
Costs that are required to cover the basic, ongoing operation of the business such as rent, advertising, and utilities.
opportunity cost
The next best alternative use given up when resources are used for an idem 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, over a period of time, when total revenue is greater than total expenses; this is the net income a business has earned over that period of time, after covering all of the expenses (except taxes)
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
