entrepreneur vocabulary list Flashcards
break even point
the minimum sales revnue 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 the lender.the entrepreneur is responsible for paying back the dept and interest even if no profit the lender tipicly has no ownership in the business
demand
the quanity of good or servic buyers are willing to perches
equity financing
obtaining funds to start or operate a business by selling shares of ownership in the business equal investors share in the profits
expence
intrest
price being paid to the lender for using his or her money
loss
total expense minus total revenue expended over a period of time when total revenue is less than the total expense
market price
that price at witch the quantity that buyers are willing to buy
operating expenses
costs that are required to cover the basic ongoing operating of the business such as rent advertising and utilities for productions of goods
opportunity cost
the next best alternative use giving up when restores are used for an idem or activity
product costs
usually refers to the cost of the actual materials and labor used to produce the goods that are sold to costomers
profit
total revenue minus total expenses
revenue
total amount of money a business receives from the sails
start-up cost
total amount to start up a business up and running
