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Harshavardhan

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YouTube • 1y

The ABCs of Entrepreneurship and Business As an entrepreneur or business professional, it's important to have a solid understanding of key terms and concepts. Here are some essential terms you should know: 1. Profit Margin: - Formula: Profit Margin = (Net Profit / Revenue) × 100 - The percentage of revenue that a business retains as profit after expenses. 2. Break-Even Point: - Formula: BEP = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit) - The level of sales/production where total revenue equals total costs. 3. Return on Investment (ROI): - Formula: ROI = (Gain from Investment - Cost of Investment) / Cost of Investment × 100 - The percentage of return on a particular investment. 4. Startup Costs: Expenses incurred when starting a new business, like legal fees, permits, inventory, etc. 5. Operating Expenses: Ongoing costs of running a business, like rent, utilities, marketing. 6. Cash Flow: The net amount of cash moving in and out of a business.

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