Loss

Meaning: 

Operational Loss:

This is when a business's expenses are greater than its revenue.

Capital Loss:

This occurs when an asset is sold for less than what it was bought for.

Bad Debts:

This refers to money that customers owe but cannot pay back.

Importance in Finance:

Losses help show how well a business is doing financially and can highlight problems with pricing or costs.

Understanding losses is important for planning the future and making investment decisions.

Impact on Goods and Markets:

Analyzing losses helps businesses find ways to lower production costs, improve pricing, and manage their inventory better.