Management would prefer a smaller safety margin to a larger one, as the smaller margin puts the company in a better financial position.

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James Hooper · Accepted Answer

Final Answer : False, Explanation :  This statement is false. Management should prefer a larger safety margin, as it ensures that the company has enough financial cushion to handle unexpected events or losses. A smaller margin may put the company at risk and lead to financial difficulties.

Management would prefer a smaller safety margin to a larger one, as the smaller margin puts the company in a better financial position.

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