According to the Pareto Principle, which of the following is true?
A) 60% of a company's customers generate 80% of the company's profits.
B) 20% of a company's customers generate 60% of the company's profits.
C) 80% of a company's customers generate 10% of the company's profits.
D) 20% of a company's customers generate 80% of the company's profits.
E) 60% of a company's customers are unprofitable.

Question

Quizplus · Accepted Answer

The Pareto Principle states that 80% of effects come from 20% of causes. Applied to business, this means that 20% of a company's customers will generate 80% of its profits. Therefore, the correct answer is D, which states that 20% of a company's customers generate 80% of the company's profits.

According to the Pareto Principle, Which of the Following Is