Question

PLEASE HELP ME! Which of the following businesses is demonstrating a loss?

a. Company C, where the government is intervening to prevent fraud
b. Company B, where there is conflict between the workers and the management
c. Company A, where the cost of production is greater than the selling price
d. Company D, where there is a greater demand for a product than can be met

Answer 1

Choice C demonstrates a loss. Company A, because it costs more to create their product than to sell it, is not making a profit. They are losing money, and that is considered a loss.

Answer 2

The businesses that demonstrates a loss is Company A, where the cost of production is greater than the selling price.
This would make the company run slowly and this would make them lose lots of money.