Definition
A loss occurs when a company's expenses exceed its revenue during a specific accounting period, resulting in a negative net income. Losses indicate that a company's operations are not generating sufficient revenue to cover its costs and may signal financial distress or poor performance. While losses reduce a company's equity and financial resources, they also provide valuable insights into areas for improvement and strategic adjustments to restore profitability and long-term sustainability.
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Private Limited Company (Ltd)
A Private Limited Company (Ltd) is a type of company where the ownership is divided into shares held by a small number of shareholders. The liability of shareholders is limited to the amount unpaid on their shares, and the company’s shares cannot be traded publicly on the stock exchange.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is a business structure where partners have limited personal liability for the debts and obligations of the partnership. Each partner’s liability is limited to their investment in the LLP, and they are protected from the actions of other partners.