Reading comprehension is a skill that empowers lifelong learning intelligence for a better self.
The margin of safety..
✅ ..is the difference between a company’s actual or projected sales and its breakeven sales.
✅ ..represents the number of sales that a company can lose before it starts to operate at a loss.
✅ ..a company would be operating at its breakeven point.
✅ ..means it is neither making a profit nor a loss.
✅ ..the company is barely breaking even with NO profit and NO loss.
✅ ..any further decrease in sales would result in a loss.
✅ ..have a margin of safety that is significantly higher than its expected drop in sales to ensure that it can continue to operate profitably even in a worst-case scenario.
✅ ..should focus on improving its sales and reducing its costs to increase its margin of safety and avoid operating at the breakeven point.
✅ ..necessary to re-evaluate its business strategy and make crucial changes to adapt to the changing market conditions to avoid such a situation in the future.