Entrepreneur Flashcards
(18 cards)
Break-even point
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.
cash flow forecast
Process of estimating the cash that will be coming into a business and the cash that will flowing out of the business during during the same period of time.
debt financing
Borrowing money that will be used to start up your business without giving away equity.
demand
The amount 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 the business.
expense
Product cost + operating expenses
interest
Price being paid to the lender for using his or her money.
loss
When you get profit is less than 1.
market price
The price that a good or service typically goes for.
operating expenses
The cost of the basic operation of a 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 costs
The total cost to make the item.
profit
Total revenue minus total expenses over a period of time.
revenue
Total dollar amount received from selling its good, or service.
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
The group that a business looks to bring into their doors.
venture capitalist
Organizations or individuals who professionally provide equity financing for risky markets.
