Entruperuer

Question 1

Break even point

Answer 1

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.

Question 2

cast flow forecast

Answer 2

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 .

Question 3

debt financing

Answer 3

Obtaining fund 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 the debt and interest even if there is no profit. The lender typically has no ownership in the business.

Question 4

demand

Answer 4

The quantity (amount) of a good or service buyers are willing to purchase (per unit of time) at various prices.

Question 5

equity financing

Answer 5

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

Question 6

expense

Answer 6

Product cost plus operating expenses.

Question 7

interest

Answer 7

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

Question 8

loss

Answer 8

Total expenses minus total revenue expended 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.

Question 9

market place

Answer 9

Name given to the entire “arena “ of places (and sources) where goods and services are and purchased.

Question 10

operating expenses

Answer 10

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

Question 11

opportunity cost

Answer 11

The next best alternative use given up when resources (such as time or money) are used for an item or activity.

Question 12

product costs

Answer 12

Usually refers to the cost of the actual materials and labor to produce the goods that are sold to customers. Also called cost of goods sold.

Question 13

profit

Answer 13

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

Question 14

revenue

Answer 14

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

Question 15

start up costs

Answer 15

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

Question 16

supply

Answer 16

The quantity (amount) of a good or service sellers are willing to suppky (per unit of time at various prices.

Question 17

target market

Answer 17

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

Question 18

venture capitalist

Answer 18

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