The Idea That a Small Number of Customers Account for a Majority

question 5

Multiple Choice

The idea that a small number of customers account for a majority of a company's sales is referred to as the ________.

• A)80/20 rule
• B)prospecting rule
• C)frequency rule
• D)top-down rule
• E)percentage of sales rule

---

Definitions:

Basic Earnings per Share

A measure of a company's profitability, calculated by dividing net income by the number of outstanding common shares.

Industry Averages

Statistical measures that represent the typical value or norm within a particular industry, used for benchmarking and comparative analysis.

Horizontal Analysis

Horizontal analysis, also known as trend analysis, is a financial analysis technique that compares historical financial data over a series of periods to identify trends, increases, or decreases in financial performance.