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GCSE Business · key term
The loss of money through business activity, including money an owner has invested.
Used by Edexcel
Specification 1.1.2 · Paper 1
Revise: Risk and RewardFinancial loss means losing money through business activity. An owner may invest savings in equipment, stock or premises and fail to recover that investment if the business is unsuccessful. This can leave less money available for personal needs or another venture.
Distinguish business failure from financial loss: failure concerns the business stopping trading; financial loss concerns money the owner or business loses.
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