1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Zina [86]
3 years ago
12

When a business does not generate enough revenue to cover salaries, rent, and other expenses, it incurs a _____.

Business
1 answer:
STALIN [3.7K]3 years ago
5 0

Answer:

The correct answer is: Net Loss.

Explanation:

A Net Loss or Net Operating Loss (<em>NOL</em>) occurs when the firm's expenditures are higher than its revenue. Net losses are the results of different factors such as inefficient employees, competition or unexpected market conditions (war). If a company reports net losses, it does not necessarily imply it will file for bankruptcy since there are other sources from where the company can hold like loans.

You might be interested in
Explain why America has a debt problem.
kenny6666 [7]

Answer:

That's because as a country's economy grows, the amount of revenue a government can spend to pay its debts grows as well. In addition, a larger economy generally means the country's capital markets will grow and the government can tap them to issue more debt.

Explanation:

hope it helps

7 0
2 years ago
Data related to the inventories of Costco Medical Supply are presented below: Surgical Surgical Rehab Rehab Equipment Supplies E
NemiM [27]

Answer:

$85

Explanation:

Costco Medical Supply's inventory:

                   Surgical Eq - Surgical Supp - Rehab Eq - Rehab Supp

Selling price     $260                  $100           $340               $165

Cost                  $170                     $90           $250              $162

Costs to sell     $30                      $15              $25                 $10

If we apply the net realizable value rule, the value of surgical supplies would be:

NRV = $100 = $15 = $85

the NRV is also the lower of cost since $85 < $90

6 0
3 years ago
A firm spends a great deal of money in advertising to inform consumers of the brand name of its mushrooms. Should consumers conc
djyliett [7]

Answer: B. Yes. Branding allows the mushrooms to be easily identified in the future. ​ Thus, if they were of inferior​ quality, the company would lose customers and go out of business over time.

Explanation:

Branding is a way of making sure that your product is easily identifiable over other products.

When a company brands it's goods, they are trying to create Brand Awareness and this usually happens when a company plans to stay in a business for a while and indeed with the way the Firm is spending a lot of money on Advertising, one can surmise that they do indeed plan to stay in the business because they have spent a lot.

It would therefore make little to no sense on their part to spend such huge amounts of money to build their brand if their products will be of low quality. The mushrooms have to be of high quality so that people may associate their brand with High Quality.

7 0
3 years ago
a. Describe how the payback period is calculated and describe the information this measure provides about a sequence of cash flo
saw5 [17]

Answer:

While taking a capital budgeting decision of source of fund, or the capital project to be chosen, we sometimes use Payback Period

It is defined as the tenure in which the cash flows will realize the cost of project, that is the period in which the entire cost will be paid back.

This provides the information regarding the time after which the project will be profitable, or the time at which it will reach break even.

The payback uses the criteria that if the payback period calculated is less than life of project it shall be accepted, in case it is equal to life of project then  there will be no profit no loss, and in case payback is higher than life of project then there will be loss.  

7 0
3 years ago
Assuming that all other requirements are met, a corporation may elect to be treated as an s corporation under the internal reven
gayaneshka [121]
<span>Assuming that all other requirements are met, a corporation may elect to be treated as an s corporation under the internal revenue code if it has </span>seventy-five or fewer stockholders.

S corporations are ordinary business corporations that <span><span>has between 1 and 100 shareholders and</span> elect to pass corporate income, losses, deductions, and credit through to their shareholders for federal tax purposes.</span>

6 0
3 years ago
Other questions:
  • True or false: economies of scale exist when expansion of the scale of production causes total production costs to increase more
    10·1 answer
  • Power is divided equally among three branches of government. what do you think is the reason for this.
    13·2 answers
  • If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this ye
    14·1 answer
  • Fanning Company makes a product that sells for $30 per unit. The company pays $16 per unit for the variable costs of the product
    12·1 answer
  • A form prepared periodically for each processing department summarizing the units for which the department is accountable and th
    10·1 answer
  • When an organization has a diverse set of employees that can provide insight and cultural sensitivity, this should improve the c
    10·1 answer
  • A monopoly industry:A. has very significant barriers to entry. B. faces a downward sloping demand curve. C. produces a product f
    8·1 answer
  • Once you purchase a house. It typically appreciates in value. Appreciation is
    11·1 answer
  • You will need to revise your budget to account for a car payment. Which expense category would be the most difficult to change o
    6·1 answer
  • You are asked to give a presentation for a local university business class. What should you focus on first when preparing for yo
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!