Entrepreneur Flashcards
break-even point
The minimum sales revenue or total units sold needed for a business to be able to cover its own expenses and begin to make a profit.
cash flow forecast
Process of estimating the cast that will be coming in a business during the same period of time.
debt financing
Obtaining funds to start or operate a business by borrowing money that has to be paid back to a lender.
demand
The quantity of a good 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 plus operating expenses.
interest
Price being paid to the lender for using his or her money.
loss
Total expenses minus total revenue expanded over a period of time.
market price
Name given to the entire “arena” of places where goods and services are sold and purchases.
operating expenses
Costs that are required to cover the basic ongoing operation of the business such as a rent.
opportunity cost
The next best alternative use given up when resources are used for and item 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. Also called cost of goods sold.
profit
Total of revenue minus total expenses over a period of time.
revenue
Total dollar amount a business receives from the sale of its goods or services.
start-up costs
Total amount of money needed to get a business up and running.
