Entrepreneur Flashcards

1
Q

Break-even point

A

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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Cash flow forecast

A

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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Debt financing

A

Obtaining funds to start or operate a business by borrowing money that has to be paid back by a lender. The entrepreneur is responsible for paying back the debt and interest even if there is no profit. The lender usually has no ownership in the business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Demand

A

The quantity of a good or service buyers are willing to purchase at various prices.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Equity financing

A

Obtaining funds to start or operate a business by selling shares of ownership in the business; equity investors share in the profits.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Expense

A

Product costs plus operating expenses.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Interest

A

Price being paid to the lender for using his or her money.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Loss

A

Total expenses minus total revenue expanded, over a period of time, when total revenue is less than the total expenses; this is the net financial loss the business has experienced through its operation over that period of time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Market price

A

The price at which the quantity that buyers are willing to buy is equal to the quantity that sellers are willing to supply.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Operating expenses

A

Costs that are required to cover the basic, ongoing operation of the business such as rent, advertising, and utilities. For production of goods, operating expenses do not include product costs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Opportunity cost

A

The next best alternative use given up when resources are used for an item or activity.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Product costs

A

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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Profit

A

Total revenue minus total expenses, over a period of time, when total revenue is over total expenses; this is the net income a business has earned over that period of time,after covering all expenses.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Revenue

A

Total dollar amount a business receives from the sale of its goods or services over a particular period of time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Start-up costs

A

Total amount of money needed to get a business up and running.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Supply

A

The quantity of a good or service sellers are willing to supply at various prices.

17
Q

Target market

A

A smaller portion of the overall main customer group for a particular business or industry. This smaller group is made up of potential customers who are believed to be most likely to purchase the good or service offered by the entrepreneur.

18
Q

Venture capitalist

A

Organizations or individuals who professionally provide equity financing for entrepreneurial ventures that are typically too risky to qualify for bank loans.