Entrepreneur Flashcards
break-even point
Minimum sales revenue or total units sold needed for a 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
demand
the quantity of a good/survice buyers are wiling to purchase
equity financing
Obtaining funds to start or operate a business
expense
Product costs plus operating expenses
interest
price being paid to the lender for using his or hers money
loss
total expenses minus total revenue expended over a perod of time
market price
That price at which the quantity that buyers are willing to pay
operating expenses
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
product costs
Usually refers to the cost of the actual materials and labor used to produce the goods that are sold
profit
Total revenue minus total expenses over a period of time
revenue
total dollar amount a business receives from the sales of its goods and services.
start-up costs
Total amount of money needed to get a business
target market
A smaller portion of the overall main customer group for a particular business or industry
venture capitalist
organizations or indviduals who professionally provide equity financing for entrepreneurial ventures.
