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.

Question

Quizplus · Accepted Answer

The 80/20 principle is most relevant to the ELMS system of designating accounts by size. The 80/20 principle asserts that large accounts are the reason for 80 percent of a company's profitable sales even though they represent only 20 percent of total accounts.

The 80/20 Principle