Question:Why is it reasonable for a startup company to forecast a Net Loss for several years? 

A A company can never make money in its first years. 
B It reduces tax liability in future years. 
C As the company launches and grows, expenses will often exceed any revenue-generating abilities; hence, the expected payoff will not come until future years. 
D It's not reasonable and should not be done. 

+ Answer
C 

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Md. Habib Ullah

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