How Is the Customer Pyramid More Appropriate Than the 80-20

question 21

Essay

How is the customer pyramid more appropriate than the 80-20 rule for identifying customers?

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Definitions:

Stock Split

The division of a company's existing stock into multiple shares to boost the liquidity of the shares, although the market capitalization remains the same.

SFAS No.123

An accounting standard issued by the Financial Accounting Standards Board (FASB) related to the expensing of stock options, specifying how companies should account for stock-based compensation.

Stock Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a stock at a predetermined price within a specific time frame.

APB No.25

An accounting principle that dealt with stock-based compensation and required companies to record an expense for issued options.