The 80-20 Rule Reflects the Idea That ________

question 59

Multiple Choice

The 80-20 rule reflects the idea that ________.

• A) 20% of the company's profits are generated by the top 80% of customers
• B) the top 20% of customers are highly satisfied and 80% of customers will recommend the company to a friend
• C) 20% of customers are unprofitable, and 80% make up a company's profits
• D) the top 20% of customers often generate 80% of the company's profits
• E) any new product will be accepted by 20% of the customers immediately, but 80% of the customers will be up for grabs throughout the product's life cycle

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Definitions:

Worker Empowerment

Strategies and practices that give employees authority and power to make decisions and contribute to the company's success.

Vertical Structure

An organizational hierarchy where authority and responsibility flow from top management down through various levels of management.

Formal Rules

Established regulations, principles, or guidelines that are officially recognized and enforced in a particular setting or organization.

Division of Labour

The distribution of various segments of a production process or activity among several people to enhance efficiency and productivity.