Calculating the Margin of Safety (MOS) Measure Will Help a Firm

question 82

Multiple Choice

Calculating the margin of safety (MOS) measure will help a firm answer which of the following questions?

• A) Will we break even?
• B) Are we using our debt wisely?
• C) How much will profits change if sales change?
• D) How much profit will we earn?
• E) How much revenue can we lose before we drop below the breakeven point?

---

Definitions:

Preliminary Hearing

A preliminary hearing is a court proceeding where the judge determines whether there is sufficient evidence for the case to proceed to trial.

Information Route

The path or channel through which information is transmitted from one point to another.

Grand Jury

A body of citizens convened to consider whether there is sufficient evidence to indict someone suspected of a crime, functioning primarily in the U.S. legal system.

Recklessness

The act or state of demonstrating a lack of regard for the danger or consequences of one's actions, differentiating from mere carelessness by the conscious decision to disregard safety.