Investment & Ownership
The percentage of a company an investor owns.
Equity
The term for the percentage difference between the cost of making a product and its selling price.
Gross Margin
The cost of gaining one new customer.
Customer Acquisition Cost (CAC)
A small shop earns $500 from sales and $300 from services. Expenses are $200. What is the total profit?
$600
A short, persuasive presentation to investors is called a ________.
Pitch
The estimated worth of a company in the eyes of investors.
Valuation
A company’s total income from all sales before deducting expenses.
Revenue
The total money a business expects to earn from one customer over time.
Lifetime Value (LTV)
A bakery makes $1200 in profit and spends $700 on rent and supplies. How much revenue did it make?
$1900
Allowing another company to make and sell your product for a fee is called ________.
Licensing
The difference between selling price and cost
Gross margin
Legal protection that prevents others from copying your invention or design.
Patents
A business spends $200 on ads and gains 10 customers. What is the CAC?
$20
A company is vlaued at $1 000 000 and you own 17.5%. How much is your ownership worth?
$175 000
Which language translates entrepreneur to "one who undertakes"
French
What does a high burn rate signal to investors?
The company is spending cash quickly and may run out soon
A working model or early sample of a product made to test and improve before full launch
Prototype
A plan for how investors will eventually get a return on their investment, such as selling the company, is called ________.
Exit Strategy
A startup has $200 000 in savings and has a burn rate of $25 000 per month. How many months of runaway remain?
8 months
What is the nickname for the famous New York City district known for finance and investment companies?
Wall Street
A company has a high valuation but low revenue growth. What concern might an investor have?
The company might be overvalued or not scalable
The point at which total revenue equals total expenses.
Break-even point
A company controls 60% of the soda market in a city. This is called its ________.
Market Share
A fitness studio sells memberships for $80 per month. Fixed costs are $5,000 and each member costs $30 per month to maintain.
100 members
What is the special term used to describe a rare, privately held startup valued at over $1 billion. These are usually known for disruptive innovation, rapid growth, and high potential returns.
"Unicorn" Company