Entreperneur Flashcards
Break-even point
Minimum sales revenue is needed for a business to equal its own expenses and begin to make a profit
Cash flow forecast
Estimating the cash that will come into the business and the cash that will flow out of the business during the same 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 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
Expanse
Product costs plus operating expenses
Interest
Price being paid to the lender for using his or her money
Loss
Total expenses minus the total revenue
Market price
That price at which the quantity that buyers are willing to buy is equal to the quantity that the sellers are willing to supply
Operating Expenses
Costs that are required to cost the basic ongoing operation
Opportunity cost
The next best alternative use ongoing 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
profit
Total revenue minus total expenses, over a period of time, when the total revenue is greater than total expenses
Revenue
Total dollar amount a business receives from the sale of its goods or services
Start-up costs
The total amount of money needed to get a business started
