What is a Business Loss?

A loss-making enterprise refers to an enterprise in which the income obtained cannot make up for the expenses incurred during the production and operation process. Losing enterprises can be divided into policy-losing enterprises and operating-loss enterprises according to the reasons for the losses. For policy-loss enterprises, within the scope of the plan, the state generally provides financial remedies for effective loss-recovery measures to cover losses within a time limit. State-owned loss-making enterprises do not levy income tax during the prescribed period of turning around losses. ^[1]