Title: Explain break-even point.
Course: Entrepreneurship (12053-I) > Section: Understanding Basic Economic Principles

Explanation should include the concept of break-even as the point when cash flow becomes positive, indicating that the business is beginning to show a profit.

Process/Skill Questions:

- How does a company determine the break-even point for a product/service?
- Why is it important to determine break-even points before a business starts operation?
- How does seasonality affect the break-even point projections?
- When is equilibrium achieved?
- What information is needed to calculate the break-even point?
- What is the break-even analysis formula?
- How does an entrepreneur use a break-even analysis when planning a business canvas model?
- How does an entrepreneur use break-even pricing to gain market share and drive competitors from the marketplace?