The 20-80-30 Rules Reflects the Idea That

question 132

Multiple Choice

The 20-80-30 rules reflects the idea that

• A) the top 20 percent of customers are highly satisfied, 80 percent of customers will recommend the company to a friend, and 30 percent are unsatisfied.
• B) 20 percent of customers are unprofitable, 80 percent of customers make up 30 percent of a company's profits.
• C) any new product offering will be accepted by 20 percent of the customers immediately, this figure will eventually rise to 30 percent, however, 80 percent of the customers will be up for grabs throughout the product life cycle for the product.
• D) the top 20 percent of customers generate 80 percent of the company's profits, half of which are lost serving the bottom 30 percent of unprofitable customers.
• E) 20 percent of the company's profits are generated by 80 percent of customers, and 30 percent of customers are satisfied.

---

Definitions:

Recessionary Periods

Recessionary periods are times of economic decline when there is a decrease in the gross domestic product (GDP), employment, and spending for two consecutive quarters or more.

Bond Ratings

An assessment of the creditworthiness of a bond issuer, reflecting the likelihood of the bond’s credit default, ranked by grade by credit rating agencies.

Call Protection Provision

A feature of a bond that prohibits the issuer from redeeming the bond before a specified date, protecting bondholders.

Bond Indenture

A legal contract between the bond issuer and the bondholders, detailing the terms of the bond such as interest payments, maturity date, and the issuer's obligations.