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Identify the common indicators of risk by considering the risk factors that management must be...

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Accounting

  • Identify the common indicators of risk by considering the risk factors that management must be aware of in any period of performance being analyzed.
    • What does the term Margin of Safety provide in the assessment of a companys level of risk? How is it calculated?
    • Explain what Operating Leverage means and how it can help managers assess risk in the event of a decrease in sales volume. This is also described as an operating leverage factor.

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