What is Loss?
Loss occurs when a company's expenses exceed its revenue. It represents a negative financial result and is the opposite of profit.
Loss occurs when a company's expenses exceed its revenue. It represents a negative financial result and is the opposite of profit.
Introduction: In financial terms, a loss occurs when expenses exceed revenues in a business operation, indicating that the business has spent more to produce, market, and sell its goods or services than it has earned from those activities. Recognizing and analyzing losses is crucial for any business, as it signals the need for strategic reassessment and operational adjustments. Losses can result from a variety of factors, including decreased demand, rising costs, competition, inefficiencies, or external economic conditions. While occasional losses may be part of business cycles, sustained losses require immediate attention to prevent liquidity issues, insolvency, or business failure.
Strategies to Mitigate Loss: