Retailers Often Find the 80-20 Principle Evident Within the ABC

question 86

Multiple Choice

Retailers often find the 80-20 principle evident within the ABC analysis. What does the 80-20 principle imply?

• A) About 20 percent of a retailer's sales promotion sells 80 percent of its inventory.
• B) Approximately 20 percent of a retailer's sales come from 80 percent of its products.
• C) Approximately 80 percent of a retailer's inventory was sold, and 20 percent was wasted.
• D) 80 percent of the retailer's customers are repeat customers and only 20 percent are new.
• E) Approximately 80 percent of a retailer's sales come from 20 percent of its products.

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Definitions:

Financing Statement

A document filed to give public notice of a security interest in collateral, used to perfect a secured party's interest under the Uniform Commercial Code.

Real Estate Mortgage

A legal agreement where a borrower pledges real property to a lender as security for a loan used to purchase that property.

Financing Statement

A document filed by a creditor to indicate a security interest in the personal property of a debtor.

Constructive Notice

Legal concept indicating that a person should have known a fact because it was publicly available or recorded, even if they had no actual knowledge of it.