Tag: loss

What is Break Even?

Break Even Break Even is point where sales – expenses = 0  It is calculated in units & R. It can take months or years to reach break even. Break Even helps determine when business will reach 0 & thereafter show a profit

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What is Sweat Equity?

Sweat Equity, is where the entrepreneur  Contributes time & effort, your “sweat” Contributes knowledge, skills & connections

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What is Owner’s Equity?

Owner’s Equity Owner’s Equity = Capital Contribution + Changes below Owner’s Equity Computation Capital contribution by the owner + Net Profit – Net Loss – Owner Drawings = Owner’s Equity

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