The 20-80 Rule Reflects the Idea That ________

question 136

Multiple Choice

The 20-80 rule reflects the idea that ________.

• A) the top 20% of customers often generate 80% of the company's profits
• 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) 20% of the company's profits are generated by the top 80% of customers
• E) any new product offering 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

---

Definitions:

Formal Documents

Official papers that follow a specific format or standard, often used for legal, official, or ceremonial purposes.

Solicit Capital

The act of requesting funding or investment from individuals or organizations, typically for business operations or projects.

General Supply

Refers to the overall provision or stock of resources, goods, or equipment that is available for use.

Managed by Shareholders

An organizational structure in which the owners (shareholders) of a firm take an active role in the management decisions.