loss

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Loss

The opposite of gain.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

loss

The deficiency of the amount received as opposed to the amount invested in a transaction. Compare gain. See also net loss.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
The transportation committee at the Makkah Chamber of Commerce and Industry (MCCI) met on Wednesday to discuss high insurance rates and huge losses incurred by investors in the transport sector.
BEIRUT: Iraq's transport minister is prepared to pay for the losses incurred when a plane from Beirut to Baghdad was forced to turn around because his son had missed the flight.
"Action has now been taken to address these and the other factors contributing to the losses incurred in 2011 and we can look forward to 2012 and beyond with renewed confidence."
According to him, the total economic losses incurred by Egypt range from 55 to 60 billion poundsm but this figure is likely to rise to nearly 100 billion pounds in the event of continuing political tensions.
George Primarolo, Totesport IT'S not been a good week for the layers so far and we desperately need a good result in the Totesport Mile to claw back the losses incurred so far.
$8bn in Losses Incurred from Terrorism on Saudi Arabia in Five Years
The nation's largest convenience store chain, which has nearly 12,000 stores nationwide, will be the first convenience store chain operator to shoulder part of the losses incurred by franchise stores in disposing of expired food products.
Summary: Fourteen airports in Algeria are under threat of closure due to losses incurred from the global economic crisis.
Marsh is offering a property insurance program that can provide up to $500 million of annual capacity, in the aggregate, for windstorm losses incurred by all participating oil and gas companies operating in the Gulf of Mexico in a given policy year.
LOSSES incurred by Northern Rock on repossessed homes soared nearly four-fold during 2008 as the economy deteriorated, new figures show.
"Due to the magnitude of the operating losses incurred by our Georgia subsidiary, management adopted a plan in September 2005 to dispose of all Georgia operating assets," Chuck Coppa, GreenMan CFO, says in a press release.
EUROPEAN Union (EU) tax authorities must take into account financial losses incurred by taxpayers in a foreign EU member state when assessing tax, if they recognise such losses generated in their home country, the European Court of Justice has ruled.