Todd Harris and Associates, a New York sales promotion agency, discovered from an analysis of its files that one-quarter (or 25 percent) of its clients generated more than three-quarters (or 75 percent) of its fees and commissions. This is an example of what concept?
A) the two quarter gap
B) the 80/20 rule
C) the law of usage
D) the 75/25 exchange
E) Paget's Law

Question

Quizplus · Accepted Answer

This is an example of the 80/20 rule, also known as the Pareto Principle, which states that roughly 80% of effects come from 20% of causes. In this case, a small percentage of clients (25%) are generating a large percentage of the fees and commissions (75%).

Todd Harris and Associates, a New York Sales Promotion Agency