Todd Harris and Associates, a New York sales promotion agency, discovered from analysis of its files that one-fifth of its clients accounted for more than three-quarters of its fees and commissions. This is an example of what classic concept?

Complete/Correct Question:

Todd Harris and Associates, a New York sales promotion agency, discovered from analysis of its files that one-fifth of its clients accounted for more than three-quarters of its fees and commissions. This is an example of what classic concept?

A. the majority fallacy

B. the law of inverse proportions

C. Murphy's Law

D. service quality

E. the 80/20 rule

E. the 80/20 rule

Explanation:

The 80/20 rule states that '80% of sales come from 20% of sales rep'. The 80/20 rule is also known as the Pareto principle was discovered by Italian ecoonomist Vilfredo Pareto. It can also be called the law of inequality,

The rule aims to help one understand how to manage sales activities as the rule also states that 80% of one's sales will come from 20% of one's customers. this understanding helps to break the rule.

Also for small businesses, The 80/20 rule is a challenge as there isn't as much customers yet and this means that every member of the sales force is needed to generate as much income as possible.

I hope this helps.

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.