Net Loss

What does it mean?
The result that occurs when expenses exceed the income produced.

In Other Words...
A person or company with a net loss has not made a profit. Newer businesses often run at a net loss for the first few years while acquiring one-time expenses (equipment, buildings, technology, rights, etc.). However, every business should have a plan to work towards a breakeven point, and then onwards to profit!

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Related Terms
Accountable Plan | Accounting Method | Capital Gain | Capital Loss | Gain | Net Income | Taxable Gain | Taxes

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