<p>Read the statement closely. The second sentence doesn't say that <em>a corporation loses money if it produces more than its value</em>, it says that <em>a corporation loses money if it uses up more value than it produces</em>.</p>

CC BY-SA 4.0
2022-02-04T14:21:44.990Z
yh but can you elaborate/ interpret the meaning in simple terms
Charles
CC BY-SA 4.0
2022-02-04T15:14:05.240Z
@Charles, If you buy apples for €100 and pay a worker €50 to make apple juice from them, but you can sell the juice for at most €120, then you are losing money.
VARulle
CC BY-SA 4.0
2022-02-06T09:17:27.737Z
so the meaning of value here is money or  expense on production. is it?
Charles
CC BY-SA 4.0
2022-02-06T09:40:19.643Z
Does the line state that if a corporation try to produce a product that costs more than its original value, then the corporation may run into a loss.
Charles
CC BY-SA 4.0
2022-02-04T08:36:50.447Z
2022-02-04T08:36:50.447Z
VARulle
<p>Recently I was reading a book on corporate finance titled &quot;corporate finance for dummies&quot;. Here in the introduction page the author has given a definition for corporate finance, followed by a statement as follows.</p>
<p>&quot;Corporate finance is the study of how groups of people work together as a single organization to provide something of value to society. If a corporation is using up more value than it’s producing, it will lose money and fail&quot;</p>
<p>I'm quite well confused in conceptualizing the meaning of the line that &quot;a corporation looses money if it produces more than its value&quot;. So does the line mean that <em>if a corporation try to produce a product that costs more than its original value, then the corporation may run into a loss</em>. Can someone elaborate the idea, as it helps a lot.</p>

CC BY-SA 4.0
2022-02-04T09:06:22.963Z
(-1) Use quotes to quote, not rephrase, because sometimes the rephrasing can change the meaning of the entire sentence.
Giskard
CC BY-SA 4.0
2022-02-06T09:19:00.923Z
done, sorry for that.
Charles
CC BY-SA 4.0
2022-02-06T09:21:23.217Z
You misunderstand. You appear to quote the sentence "a corporation looses money if it produces more than its value" but does this appear anywhere in your source, or is this your own phrasing?
Giskard
CC BY-SA 4.0
2022-02-06T09:37:12.973Z
yep, re-edited the title now.
Charles
CC BY-SA 4.0
2022-02-06T09:45:24.957Z
I will try to explain it more simply: where did you read this sentence? "a corporation looses money if it produces more than its value" Please link to the source, or give the page number of the book where this exact sentence appears.
Giskard
CC BY-SA 4.0
2022-02-06T09:52:44.977Z
Okay, so I have just downloaded this book (Corporate Finance For Dummies, 2nd Edition by Michael Taillard), and searched for the word "*produces*". It appears about 8 times in the book, and never in the sentence that you wrote. So it seems unlikely that what you wrote is an actual quote.
Giskard
<finance><financial-economics><definition><corporate-finance>
What does it mean by the statement "a corporation looses money if it produces more than its value"
Charles
# What does it mean by the statement "a corporation looses money if it produces more than its value"

(Asked by: username_0 on 2022-02-04)

Recently I was reading a book on corporate finance titled "corporate finance for dummies". Here in the introduction page the author has given a definition for corporate finance, followed by a statement as follows.

"Corporate finance is the study of how groups of people work together as a single organization to provide something of value to society. If a corporation is using up more value than it’s producing, it will lose money and fail"

I'm quite well confused in conceptualizing the meaning of the line that "a corporation looses money if it produces more than its value". So does the line mean that *if a corporation try to produce a product that costs more than its original value, then the corporation may run into a loss*. Can someone elaborate the idea, as it helps a lot.

**Tags:** finance, financial-economics, definition, corporate-finance

> **Comments:**
> **username_1**: (-1) Use quotes to quote, not rephrase, because sometimes the rephrasing can change the meaning of the entire sentence.  
> **username_0**: done, sorry for that.  
> **username_1**: You misunderstand. You appear to quote the sentence "a corporation looses money if it produces more than its value" but does this appear anywhere in your source, or is this your own phrasing?  
> **username_0**: yep, re-edited the title now.  
> **username_1**: I will try to explain it more simply: where did you read this sentence? "a corporation looses money if it produces more than its value" Please link to the source, or give the page number of the book where this exact sentence appears.  
> **username_1**: Okay, so I have just downloaded this book (Corporate Finance For Dummies, 2nd Edition by Michael Taillard), and searched for the word "*produces*". It appears about 8 times in the book, and never in the sentence that you wrote. So it seems unlikely that what you wrote is an actual quote.  

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## 1 answers

### Answer by username_2 on 2022-02-04. Score: 1

Read the statement closely. The second sentence doesn't say that *a corporation loses money if it produces more than its value*, it says that *a corporation loses money if it uses up more value than it produces*.

> **Comments:**
> **username_0**: yh but can you elaborate/ interpret the meaning in simple terms  
> **username_2**: @username_0, If you buy apples for €100 and pay a worker €50 to make apple juice from them, but you can sell the juice for at most €120, then you are losing money.  
> **username_0**: so the meaning of value here is money or  expense on production. is it?  
> **username_0**: Does the line state that if a corporation try to produce a product that costs more than its original value, then the corporation may run into a loss.  

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