The "80/20 Rule" Says That

question 71

Multiple Choice

The "80/20 rule" says that:

• A) only 20 out of every 100 firms use formal accounting controls.
• B) a firm should hire 20 sales reps for every 80 customers.
• C) marketing accounts for 80 percent of a typical consumer's dollar.
• D) even though a firm is showing a profit, 80 percent of its business might be coming from only 20 percent of its customers.
• E) usually about 20 percent of a firm's customers are unprofitable.

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Definitions:

Critical Thinkers

Individuals who actively engage in analysis, evaluation, and synthesis of information in order to form a judgment or conclusion.

Beliefs

Acceptance that something exists or is true, especially one without proof.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.

Negative Thinking

A cognitive process that involves focusing on the worst aspects of a situation, expecting the worst, and viewing oneself and the world with pessimism.