Entrepreneur Flashcards
break-even point
minimum sales revenue/units sold needed for a business to cover expenses/make profit
cash flow forecast
estimating cash going in and out of business during a specific period of time
debt financing
obtaining funds to start or operate a business by borring money/paying it back
demand
quantity of a good or service buyers are willing to purchase at various prices
equity financing
obtaining funds to start a business by selling shares of ownership
expense
product costs plus operating expenses
interest
price being paid to the lender for using his money
loss
total expenses minus total revenue expended when total revenue is less than total expenses
market price
price at which the quantity that buyers are will to buy is equal to the quantity that sellers are supplying
operating expenses
costs that are required to cover the basic operation of the business
opportunity cost
next best alternative use given up when resources are used for an item or activity
product costs
usually refers to the cost of the actual materials and labor used to proeduce 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
revenue
total dollar amount a business receives from sale of its goods
start-up costs
total amount of money needed to get a business up and running
