loss


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Related to loss: Deadweight loss, Lossa

Loss

The opposite of gain.

Loss

Extracting less money from a transaction than one put into it. For example, a business' expenses may be $1 million for a year but it may only take in $800,000 in revenue. In such a case, the business has suffered a $200,000 loss. This is not always bad; most businesses lose money in the first few years of operation and this can reduce their tax liability when they do make a profit. However, losses over an extended period of time ultimately result in failure. See also: Gain, Paper Loss, Loss Carryforward, Loss Carryback.

loss

The deficiency of the amount received as opposed to the amount invested in a transaction. Compare gain. See also net loss.

loss

the shortfall between a firm's sales revenues received from the sale of its products and the total costs incurred in producing the firm's output (see BREAK-EVEN ANALYSIS). Losses may be of a temporary nature occasioned by, for example, a downturn in demand (see BUSINESS CYCLE) or due to an exceptional level of expenditures (such as the launch of a series of new products). Short-term losses are usually financed by a firm running down its RESERVES or by an increase in borrowings. Losses which are sustained over time typically arise from a firm's poor competitive position in a market (see COMPETITIVE ADVANTAGE), and unless competitiveness can be restored market exit or DIVESTMENT may be the only practical way of remedying the situation. See MARKET SYSTEM.

loss

the difference that arises when a firm's TOTAL REVENUES are less than TOTAL COSTS. In the SHORT RUN, where firms’ total revenues are insufficient to cover VARIABLE COSTS, then they will exit from the market unless they perceive this situation as being temporary. In these circumstances, where firms’ total revenues are sufficient to cover variable costs and make some CONTRIBUTION towards FIXED COSTS, then they will continue to produce despite overall losses. In the LONG RUN, however, unless firms’ revenues are sufficient to cover both variable and fixed costs, then their overall losses will cause them to exit from the market. See MARKET EXIT, LOSS MINIMIZATION, PROFIT-AND-LOSS ACCOUNT.
References in periodicals archive ?
June 1, 2006 was a testing date, because Pension acquired Loss Co.
Pure-tone audiometry at 500 to 8,000 Hz revealed a profound bilateral hearing loss.
By pooling the foreign currency gains and losses of all assets together with earnings, in the equity pool, the 1991 proposed regulations effectively required recognition of currency gain or loss on all the assets of the QBU, including nonfinancial assets.
When decreasing a psychotropic drug, assess the resident for any signs or symptoms of the underlying disorder for which the drug was prescribed, since these can also contribute to weight loss.
to the point where divided floor Loss Factors often rise well above 35% and Carpetable Area can be less than half of the Rentable Area.
There are three basic ways primary insurers can obtain catastrophe protection: purchase traditional catastrophe reinsurance, issue catastrophe bonds or purchase an industry loss warranty.
A theft loss can be used to reduce a taxpayer's tax liability to zero without resulting in any liability for alternative minimum tax [Sec.
For example, if you sell Ford (NYSE: F) stock at a loss, you might buy General Motors (NYSE' GM) right away without jeopardizing your tax break.
If the hearing test shows that you have a hearing loss, there may be one or more ways to treat it.
Typically, the loss of hearing associated with presbycusis occurs in both ears (Williams, 1984), but the extent of loss in each ear may vary.
If you know at a biological level what's going wrong in the ear, you at least have a chance of intervening, preventing the hearing loss from getting any worse, or maybe even reversing it," says Steel.
As can be seen from these charts, the loss of strontium is approximately linear with time.