loss

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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 ?
Although sudden hearing loss has been an ongoing problem throughout history, its etiopathogenesis is still not completely clear.
Therapeutic effect of lipoprostaglandin E1 on sudden hearing loss. Am J Otolaryngol 2005;26(4):245-8.
Caption: Figure 4: Pure Tone Audiometry recorded one, 14, and 60 days after onset of sudden hearing loss in the left ear (second episode).
Sudden hearing loss associated with peginterferon and ribavarin combination therapy during hepatitis C treatment.
Some important findings of this study were that no eventual worsening of hearing occurred while the patients received ERT and that the incidence of SSNHL was obviously higher in this population than the incidence of sudden hearing loss in the general population.
Antioxidants in treatment of idiopathic sudden hearing loss. Otol Neurotol.
But warnings abound even for patients seeking the real deal: October label revisions to Cialis, Levitra, and Viagra now contain notices that those products can cause sudden hearing loss. Dr.
Gray, et al., "The Prognostic Significance of Serum Antibodies to Inner-Ear Supporting Cell Antigens in Progressive or Sudden Hearing Loss," Archives of Otolaryngology Head and Neck Surgery 131, no.
Specifically, LO may be suspected in case of sudden hearing loss unresponsive to medical therapy, and "emergency" CI should follow when radiological signs of LO are found.
She said researchers at Mass Eye and Ear have studied 13 patients with the fracture and "every one had the same story": sudden hearing loss after what doctors call "digital manipulation."

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