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 cash that will be coming into a business and the cash that will be flowing out of the business during the same period of time
Debt financing
borrowing money to operate a business.
Demand
The quantity of a good/service buyers are willing to purchase
equity financing
Getting 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 expended over a period of time when total revenue is less that the total expenses
market price
The price which the quantity the buyers are going to buy
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 item or activity
product cost
Usually refers to the cost of the actual materials and labor used to products and food that are sold to customers
Profit
Total revenue minus the total expenses over a period of time when total revenue is greater than total expenses
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
Supply
The quantity of a good or service sellers are willing to supply
Target Market
A smaller position of the overall main customer group for a particular business or industry
Venture capitalist
Organizations or individuals who professionally provide equity financing for entrepreneurial ventures that are typically too risky to qualify for bank loans
