Which of the Following Statements Captures the 80/20 Principle in Sales

question 68

Multiple Choice

Which of the following statements captures the 80/20 principle in sales?

• A)is a territorial management concept that favours a salesperson putting 80 percent of his time on planning and 20 percent on action
• B)refers to the fact that eighty salespeople require twenty sales managers to keep the appropriate 4-to-1 ratio of supervisors to employees
• C)indicates that no matter how hard a salesperson tries 20 percent of the customer's potential business ends up going to competitors
• D)is a territorial management concept that favours a salesperson putting 80 percent of her time on action and 20 percent on planning
• E)refers to the idea that a small portion of a firm's customers account for a large portion of its profitable sales

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Definitions:

Customer Order Entry

The process by which a customer's order is received, processed, and entered into a company's order management system.

Product Receipt

Product receipt refers to the process of receiving goods or inventory, documenting their arrival, and updating inventory records accordingly.

Complete Payment

A financial transaction where the full amount owed is paid by the buyer to the seller.

Procurement Cycle

The process of acquiring goods and services from identification of need through to the end of a service contract or life of an asset.