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. the entrepreneur is responsible for paying back debt and interest even if there is no profit.
demand
the quantity of a good or service buyers are willing to purchase at various prices
equity financing
obtaining 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
market price
that price that at which a buyer are willing to pay is equal to the quantity that sellers are willing to supply
operating expenses
cost that are required to cover the basic ongoing operation of 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 produce the good that are sold to customers
profit
total revenue minus 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 cost
total amount of money needed to get a business up and running
