Pareto's Law suggests that 80% of a company's revenues or profits are accounted for by 20% of a firm's products or customers.

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Pareto's Law, also known as the 80/20 rule, posits that for many events, roughly 80% of the effects come from 20% of the causes. In a business context, this often translates to 80% of a company's revenues or profits coming from 20% of its products or customers.

Pareto's Law Suggests That 80% of a Company's Revenues or Profits