Entrepreneur Flashcards
(18 cards)
break-even point
The minimum sales revenue or total units sold is 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 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 the debt and interest even if there is no profit. The lender typically has no ownership in the business.
demand
The quantity of a good or service buyers are willing to purchase at various prices.
equity financing
One who identifies market opportunities others have overlooked and who acts on those opportunities to create new goods services and business ventures based on them.
expense
Product costs plus operating expenses
interest
Price being paid to the lender for using his or her money
loss
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.
market place
Name given to the entire arena of places where goods and services are sold and purchased
operating expenses
costs that are required to cover the basic ongoing operation of the 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 goods that are sold to customers
profit
total revenue minus total expenses over a period of time when total revenue is greater than total expenses this is net income a business has earned over that period of time after covering all expenses
revenue
total dollar amount a business receives from the sale 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 sellers are willing to supply at various prices
target market
a smaller portion of the overall main customer group for a particular business or industry
venture capitalist
organizations or individuals who professionally provide equity financing ventures that are typically too risky to qualify for bank loans
