deficit

deficit definition - business

deficit

  1. A negative retained earnings balance. A deficit results when the accumulated losses and dividend payments of a business exceed its earnings.
  2. An excess of government spending compared to revenues.
  3. An excess of the value of a country's imports compared to the value of its exports.
  4. A shortage in something. For example, harsh weather may cause an oil company to suffer a production deficit.
  5. See operating loss.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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