A Relatively Low Margin of Safety Ratio (MOS%) for a Product

question 86

Multiple Choice

A relatively low margin of safety ratio (MOS%) for a product is usually an indication that the product:

• A) Is losing money.
• B) Has a high contribution margin.
• C) Is riskier than a product with a higher margin of safety ratio.
• D) Is less risky than a product with a higher margin of safety ratio.
• E) Requires heavy fixed cost to produce or sell.

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Definitions:

Beneficiary

An individual or group that receives benefits, advantages, or profits from something, for example, from a will, trust, or insurance policy.

Crowdfunding

A method of raising capital for projects or businesses through small amounts of money from a large number of people, typically via the Internet.

Social Media

Digital platforms that enable users to create and share content or participate in social networking.

Quiet Phase

An initial period in fundraising where organizations solicit private donations before a public campaign.