While doing an analysis, Sara realizes that close to 80 percent of her company's revenues comes from only 20 percent of her customers. This finding substantiates
A) the iceberg principle.
B) the sales paradox.
C) the 80/20 rule.
D) the standard markup rule.
E) the fishbone rule.

Question

Quizplus · Accepted Answer

The finding that close to 80 percent of the company's revenues come from only 20 percent of its customers is a classic example of the 80/20 rule, also known as the Pareto Principle, which states that roughly 80% of effects come from 20% of causes.

While Doing an Analysis, Sara Realizes That Close to 80