LOSSMAKING Meaning and
Definition
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Lossmaking is an adjective that describes a company or business venture that incurs financial losses over a particular period, typically due to more expenses than revenues. It indicates that the organization is not generating enough income to cover its costs, resulting in a negative balance between its earnings and expenditures. This, in turn, leads to a reduction in the overall value of the company.
Lossmaking businesses often struggle to maintain their operations and profitability due to various reasons, such as poor sales, excessive overheads, ineffective cost management, or intense competition. When a company repeatedly experiences losses over extended periods, it becomes a cause of concern for investors and shareholders, as it may diminish their confidence in the entity's ability to generate profits and provide returns on their investments.
Managers and stakeholders of lossmaking businesses often employ strategies such as cost-cutting measures, operational restructuring, or seeking additional financing to reverse the situation and eventually generate profits. If such efforts fail over time, it may lead to severe consequences including bankruptcy, liquidation, or the need for a major overhaul in the company's management and business model.
In conclusion, lossmaking refers to a business that consistently records financial losses, indicating that it is not generating enough revenue to cover its expenses.
Common Misspellings for LOSSMAKING
- kossmaking
- possmaking
- oossmaking
- lissmaking
- lkssmaking
- llssmaking
- lpssmaking
- l0ssmaking
- l9ssmaking
- loasmaking
- lozsmaking
- loxsmaking
- lodsmaking
- loesmaking
- lowsmaking
- losamaking
- loszmaking
- losxmaking
- losdmaking
- losemaking
Etymology of LOSSMAKING
The word "lossmaking" is derived from two components: "loss" and "making".
The term "loss", dating back to the 13th century, comes from the Old English word "los", which meant the state of being destroyed or ruin. It has its roots in the Proto-Germanic word "lausaz", meaning "destruction" or "damage". The term eventually evolved to represent the negative result of an economic transaction or business operation, where the expenses exceed the revenue or investment.
The word "making" comes from the Old English word "macian", which means "to make" or "to construct". It originated from the Proto-Germanic word "makōną". In the context of "lossmaking", the term implies that a business or transaction is in the process of producing or generating losses.
