What is the term used when a business makes a loss?

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Multiple Choice

What is the term used when a business makes a loss?

Explanation:
A business incurs a loss when its costs exceed its revenues, meaning expenses outpace income. The term used to describe that situation is running at a loss. This is distinct from breaking even, where revenue exactly covers costs, and from showing a profit, where revenue exceeds costs. Capitalizes isn’t about loss; it relates to funding or recording an asset or taking advantage of an opportunity. For example, if monthly revenue is 60,000 and expenses are 75,000, the business runs at a loss.

A business incurs a loss when its costs exceed its revenues, meaning expenses outpace income. The term used to describe that situation is running at a loss. This is distinct from breaking even, where revenue exactly covers costs, and from showing a profit, where revenue exceeds costs. Capitalizes isn’t about loss; it relates to funding or recording an asset or taking advantage of an opportunity. For example, if monthly revenue is 60,000 and expenses are 75,000, the business runs at a loss.

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