A Small Business Owner Should Concentrate Collection Efforts on the Top

question 79

True/False

A small business owner should concentrate collection efforts on the top 20 percent of the company's customers since they typically account for 80 percent of all accounts receivable.

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Definitions:

Seller

An individual or entity that offers a product or service for sale.

Buyer

An individual or organization that purchases goods or services for personal use or for the purpose of resale.

GATT

General Agreement on Tariffs and Trade, an international trade agreement aimed at reducing tariffs and other trade barriers.

World Trade Organization

An international organization that regulates international trade.