Entrepreneur Flashcards
break-even point
Minimum sales to make a profit.
cash flow forecast
Money flowing in and out of the business.
debt financing
Borrowing money to start a business.
demand
Quantity of a good/service buyers are willing to purchase at various prices.
equity financing
Obtaining funds to start or operate a business.
expense
Product costs plus operating expenses.
interest
Price paid to borrow money.
loss
Total revenue is less than expenses.
market price
Quantity that buyers are will to buy is = to the quantity sellers are willing to sell.
operating expenses
Costs that cover basic operations.
opportunity cost
Next best alternative.
product costs
Cost of actual materials and labor.
profit
Total revenue is higher than expenses.
revenue
Money business receives from sales.
start-up costs
Total money needed to get business up and running.
