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
Obtaining funds to start or operate a business by borrowing money that has to be paid back to a lender.
demand
the quantity (amount) of a good or service buyers are willing to purchase (per unit of time) at various prices.
equity financing
Obtaining funds to start or operate a business by selling shares of ownership in the business; equity investors share in the profits.
expenses
product costs plus operating expenses
interest
price being paid to the lender for using his or her money.
loss
total expenses minus total revenue expended.
market price
that price at which the quantity that buyers are willing to buy per unit of time.
operating expenses
costs that are required to cover the basic, ongoing operation of the business
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
the total revenue minus total expenses.
revenue
total dollar amount a business receives from the sale of it’s goods or services.
start-up costs
total amount of money needed to get a business up and running.
