The Margin of Safety Tells Managers

question 29

Multiple Choice

The margin of safety tells managers:

• A)how much sales would have to increase to hit the target profit.
• B)how much profit would drop if sales decreased.
• C)how much sales could drop before the firm no longer earns profits.
• D)how much profit would have to increase to hit target sales.

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Definitions:

Modeling

The process of observing and imitating specific behaviors from others as a form of learning.

Naturalistic Observation

A type of correlational study in which some naturally occurring behavior is observed without intervention in the situation.

Behavior

The way in which an organism acts or conducts itself, especially in response to its environment.

Evolutionary Perspective

The evolutionary perspective examines how the process of evolution has shaped the behavior, structure, and functions of living organisms.