The 80/20 Rule Is When a Relatively Small Proportion of People

question 7

True/False

The 80/20 rule is when a relatively small proportion of people, products, and places are responsible for or associated with a high proportion of crimes and other negative actions.

---

Definitions:

Days Sales Outstanding

Days Sales Outstanding (DSO) measures the average number of days that it takes a company to collect payment after a sale has been made.

Inventory Turnover Ratio

A measure of how many times a company's inventory is sold and replaced over a period. It indicates the efficiency of inventory management.

ROE

Return on Equity, a measure of a company's profitability that reveals how much profit a company generates with the money shareholders have invested.

Inventories

Assets held for sale in the ordinary course of business, or in the process of production for such sale, or in the form of materials to be consumed in the production process.