Entrepreneur Flashcards
Break-even point
The minimum sales revenue or total units sold needed for business.
cash flow forecast
Process of estimating the cash that will be coming into a business.
debt financing
Obtaining funds to start or operate a business by borrowing money that has to be paid back to the lender.
demand
The amount 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.
exspense
Product costs plus operating expenses.
loss
Total expenses minus total revenue expended, over a period of time.
market price
That price at which the quantity that buyers are willing to buy.
operating expense
Costs that are required to cover the basic, ongoing operation of the business such as rent.
opportunity cost
The 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 produce the goods that are sold to customers.
profit
Total revenue minus total expenses, over the period, when total revenue is greater than total expenses.
revenue
The total dollar amount a business receives from the sale of its goods or services.
start-up cost
Total amount of money needed to get a business up and running.
supply
The quantity of a good or service sellers are willing to supply at various prices.
