When a firm's expenses are greater than its sales revenue, the firm has a
A) profit.
B) loss.
C) negative cash flow.
D) recession.
E) depression.

Name: When a firm's expenses are greater than its sales revenue, the firm has a A) profit. B) loss. C) negative cash flow. D) recession. E) depression.
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Question

Quizplus · Accepted Answer

If a firm's expenses are greater than its sales revenue, it means the firm is not generating enough revenue to cover its costs. This results in a loss for the firm.

When a Firm's Expenses Are Greater Than Its Sales Revenue