Which of the Following Statements Best Describes the "Iceberg Principle

question 88

Multiple Choice

Which of the following statements best describes the "iceberg principle"?

• A) Problems in one area may be offset by good performances in other areas-and thus the problems may not be visible on the surface.
• B) Ten percent of the items in inventory usually account for 80 percent of the sales.
• C) Within a company's sales force there are usually one or two sales reps who don't carry their weight.
• D) Many sales reps do not make their quotas because they ignore certain clients.
• E) Airfreight is less risky than shipping by boat.

---

Definitions:

Sales

Transactions where goods or services are exchanged for money, usually considered a measure of a business's success or economic activity in a market.

Excise Taxes

Taxes imposed on specific goods, such as tobacco and alcohol, often intended to reduce consumption or generate revenue.

Marginal Tax Rate

The tax rate paid on an additional dollar of income.

Taxable Personal Income

The portion of an individual's earnings that is subject to taxation, after accounting for deductions and exemptions.