1. Entrepreneurship You’re the Boss!

2. Entrepreneur An individual who undertakes the creation, organization, and ownership of a business. He or she accepts the risk and responsibilities to gain profits and personal satisfaction.

3. Pricing the Product Price is simply the amount of money charged for products. When producing your own product, you must figure not only the cost of materials, but the cost of labor and of facilities and equipment as well.

4. Odd/Even Pricing Uses odd prices ($19.99) to suggest bargains and even prices ($20.00) to suggest higher quality.

5. Break –Even Point Is reached when the money from product sales equals the cost of making and distributing the product.

6. Break-Even Point To determine the number of units you need to sell to break even, you need to know three figures: Fixed expenses Variable expenses Selling price

7. Fixed Expenses Cost that remains the same, such as rent, utilities, and insurance payments.

8. Variable Expenses Cost that go up and down such as cost of materials or services, salaries and advertising.

9. Formula ________Fixed expenses_________ Unit sales price – Variable expenses= Break-even point $200.00 Selling price $6.00 Variable Expense $2.00 Determine the break-even point

10. Example Answer 50 Units $200.00 $6.00-$2.00=$4.00

11. Cash Flow Statement Describes the flow of cash into and out of a business and is one of the most important statements that is created at the end of each month (or at the end of a project).

12. Balance Sheet Is the financial statement that tells what a business is worth at any given time.

13. Income Statement The report that shows how much a business has earned or lost during a year.