The 80-20 rule reflects the idea that ________.
A) 20% of the company's profits are generated by the top 80% of customers
B) the top 20% of customers are highly satisfied and 80% of customers will recommend the company to a friend
C) 20% of customers are unprofitable, and 80% make up a company's profits
D) the top 20% of customers often generate 80% of the company's profits
E) any new product will be accepted by 20% of the customers immediately, but 80% of the customers will be up for grabs throughout the product's life cycle

Question

Quizplus · Accepted Answer

The 80-20 rule, also known as the Pareto Principle, states that roughly 80% of effects come from 20% of causes. In business, this often means that 80% of a company's profits are generated by the top 20% of its customers. Therefore, choice D is the best answer as it accurately reflects this idea.

The 80-20 Rule Reflects the Idea That ________