Which of the Following Statements Is True? A

question 75

Short Answer

Which of the following statements is true? a. The lower the margin of safety, the lower the risk of a loss if actual sales do not meet expectations.
B) A good rule of thumb is that the margin of safety should be approximately 20%.
C) The higher the margin of safety, the lower the risk of a loss if actual sales do not meet expectations.
D) Firms that face highly variable demand conditions desire a lower margin of safety.
E) None of the above statements are true.

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Definitions:

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and jealousy.

Extraversion

A personality trait characterized by a preference for social interaction, high levels of energy, and positive emotions.

Agreeableness

Agreeableness is a personality trait characterized by trust, altruism, kindness, affection, and other pro-social behaviors.

Compassionate

Feeling or showing empathy and concern for others.