The margin of safety is an effective measure of risk for a company.

Name: The margin of safety is an effective measure of risk for a company.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

The margin of safety is a measure of how much a company's sales can decrease before it becomes unprofitable. It is an effective measure of risk because it shows how much room a company has before it starts losing money, and can help investors and analysts make decisions about the company's financial health and potential for success.

The Margin of Safety Is an Effective Measure of Risk