According to the 80-20 principle,:
A) 20 percent of any company's new products will fail, and 80 percent will achieve a degree of success.
B) 80 percent of a company's sales come from within a 20-mile radius of its manufacturing plant.
C) 20 percent of the customers in a typical firm are unprofitable.
D) 80 percent of a company's products account for 80 percent of its sales volume but only 20 percent of its profit.
E) 80 percent of a company's products account for 20 percent of its sales.

Question

Quizplus · Accepted Answer

The 80-20 principle, also known as the Pareto Principle, suggests that 80 percent of effects come from 20 percent of causes. In the context of a company's products, this means that a small percentage of products (20 percent) typically accounts for a large percentage (80 percent) of sales.

According to the 80-20 Principle