entrepreneur Flashcards
(18 cards)
break-even point
The minimum sales revenue or total units sold needed for a buisness 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 buisness and the cash that willbe flowing out of the 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 moneey 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 bu selling shares of ownership in the usiness; equity investors share in the profits.
expense
Product costs plus operating expenses.
interest
Price being paid to the lender for using his or her money.
loss
Total expensesminus total revenue expanded, over a period of time, when total revenure is less than the roral expenses; this is the net financial loss the business has experienced through its operaition over that persiod of time.
market price
That price at which the quantity that buyers are willing to buy is equal to the quantity that sellers are willing to supply.
operating expenses
Costs that are required to cover the basic, ongoing operation of the business such as rent, advertsing and utilities.
opportunity cost
The nest alternatice use given up when resources are used for an item or activity.
product costs
Usually refers to the cost of the actual materials and labot used to produce the goods that are sold to costumers.
profit
Total revenue minus total espenses; this is the net income a business has earned over that period of time, after covering all expenses.
revenue
Total dollar amount a business recieves from the scale of its goods or services over a particular period of time.
start-up costs
Total amount of money needed to get a business up and running.
supply
The quantity of a good or service aer willing to supply at various prices.
target market
A smaller portion of the overall main customer group for a particular business of industry.
venture capitalist
Organuzations or individuals who professionally provide equity financing for entrepreneurial ventures that are typically too risky to qualify for bank loans.
