BACHELOR OF BUSINESS ADMINISTRATION

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BUSINESS ADMINISTRATION

STRATEGIC MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The ____ rule states that in many businesses, a high percent of the business is generated by a low percent of the clientele.
A
90/10
B
80/20
C
70/30
D
60/40
Explanation: 

Detailed explanation-1: -In marketing, the Pareto principle says that 80 percent of your sales are represented by 20 percent of your customers. If companies break free from this, they will increase profits.

Detailed explanation-2: -The 80-20 rule, also known as the Pareto Principle, is a familiar saying that asserts that 80% of outcomes (or outputs) result from 20% of all causes (or inputs) for any given event. In business, a goal of the 80-20 rule is to identify inputs that are potentially the most productive and make them the priority.

Detailed explanation-3: -The Pareto principle states that for many outcomes, roughly 80% of consequences come from 20% of causes. In other words, a small percentage of causes have an outsized effect.

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