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What is it called when the total cost of a business is greater than its total income?

Answer and explanation

Correct answer: Loss

A business incurs a loss when its total expenses or costs are greater than its total income or revenue. The relationship can be shown as Loss = Total Cost − Total Revenue, when cost exceeds income. For example, if costs are ₹8,000 and income is ₹6,000, the loss is ₹2,000. Profit occurs in the opposite situation, while saving and investment describe different financial ideas.

Related tags

Business-LossTotal-CostTotal-IncomeBusiness-RiskBusiness RiskBusinessTrade And CommerceBusiness Trade And CommerceBusiness Studies

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