The 80/20 Principle Implies That the Majority of All Demand

question 134

True/False

The 80/20 principle implies that the majority of all demand is due to a minority of the customers.

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Definitions:

Current Ratio

A financial ratio that gauges a firm's capacity to meet its short-term debts or obligations due within the next year.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its quick assets (cash, marketable securities, and receivables).

Working Capital

Current assets less current liabilities.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its short-term assets.