The 80/20 Principle

question 83

Multiple Choice

The 80/20 principle:

• A) is a territorial management concept that favors a salesperson putting 80 percent of his time on planning and 20 percent on action.
• B) refers to the fact that eighty salespeople require twenty sales managers to keep the appropriate 1-to-4 ratio of supervisors to employees.
• C) indicates that no matter how hard a salesperson tries, 80 percent of the customer's potential business ends up going to competitors.
• D) is a territorial management concept that favors a salesperson putting 80 percent of her time on action and 20 percent on planning.
• E) refers to the idea that 20 percent of a firm's customers account for 80 percent of a firm's profitability.

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Definitions:

Key Concepts

Fundamental ideas or principles that form the foundation for understanding a subject or discussion.

Cognitive Distortions

Faulty or biased ways of thinking that are often negative and lead to inaccurate perception of reality.

Behavioral Technique

A method used in psychology to modify behavior through conditioning processes.

Fear of Elevators

An anxiety disorder where individuals experience fear or panic when thinking about or riding in elevators, also known as lift phobia.