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
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
debt financing
Getting funds to start or operate a business by borrowing money that has to be paid back later
demand
The amount of a good or service buyers are willing to purchase at various prices.
equity financing
getting funds to start or operate a business by selling shares of ownership for the business; 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 expenses minus total revenue expended, over a period of time, what total revenue is less than the total expenses
market price
The 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, advertising and utilities
opportunity cost
The next best alternative use given up when resources are used for an item or activity
product costs
The cost of the actual materials and labor used to produces 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
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 for entrepreneurial ventures that are typically too risky to qualify for bank loans
