5th and 6th grade TERMS TO KNOW!

­­­5^th & 6^TH  grade ENTREPRENEURSHIP TERMS TO KNOW!

Entrepreneurship: means developing, organizing, and managing a new business or enterprise. It also refers to "solving problems for profit"

Goods or Products:  a tangible item that you can see, touch, and sell to others

Service: work or labor performed for others in return for a fee

Start-up Costs: expenses or cash investments to start a business 

Income/Revenue:  the total amount of income earned prior to paying for expenses (and taxes)

 (Income – Expenses= Profit)

Net Profit: the income earned after all expenses are paid

  

Cost of goods: direct expenses to produce, manufacture, or purchase the products or services you sell to customers

Cost of Goods Per Unit:  the amount it costs to produce one item (for example, the cost to make one brownie...)

  

Target Market: Referring to consumers in the economy, a Target Market is the group of consumers you are aiming to sell your product or service to.  Your advertisement will reflect the type of customer you hope to entice.

Fixed Costs: Costs to a business that remain the same and are predictable. For example, rent or mortgage that has been signed by contract will remain the same.

Variable Costs: Costs to a business that can change on a regular basis (unpredictable.) For example, a lemonade stand might have to face the changed costs of lemons bases on how successful the lemon season was.

Manufacturer:   Makes the good or products

Wholesaler:  Buys products in large quantities from the manufacturer and sells to a retailer

Retailer:  Buys products in small quantities and sells them directly to individual consumers

Venture Capitalist:  An investor who either provides capital to startup businesses or supports small companies that wish to expand. Venture capitalist are willing to invest in such companies because they can earn a massive return on their investment (think "Shark Tank").