What is meant by your statement, "That you, as an individual, enter a company knowing it is losing money, this is not permissible," and does that mean that profit from this company is unlawful (haram), or is it a matter of leaving what is better (tark al-awla) and taking precautions to avoid loss?

It is not permissible for a Muslim to enter into a partnership in which he knows he will lose his money and will not earn anything to compensate his loss, due to the Prophet's (peace and blessings be upon him) prohibition of wasting money. As for the profit resulting from that, it is not forbidden for him to benefit from it, as the prohibition is specific to wasting money and not to earning it.