17. what happens when a business incurs a loss?\n a. it automatically shuts down\n b. it starts making a…
17. what happens when a business incurs a loss?\n a. it automatically shuts down\n b. it starts making a profit\n c. its revenue is higher than expenses\n d. its expenses surpass its revenue
Answer
Brief Explanations:
A business incurs a loss when its costs of operation (expenses) are greater than the income it generates (revenue). A loss - making business doesn't necessarily shut down immediately, and it isn't making a profit. When revenue is higher than expenses, it's making a profit.
Answer:
D. Its expenses surpass its revenue