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Test: Financial Forecasting Test

Question 29: Prev Next
Why is it reasonable for a startup company to forecast a Net Loss for several years?
It's not reasonable and should not be done.
As the company launches and grows, expenses will often exceed any revenue-generating abilities; hence, the expected payoff will not come until future years.
It reduces tax liability in future years.
A company can never make money in its first years.
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