as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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explain the "80/20 rule"
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the 80/20 rule, also known as the pareto principle, states that roughly 80% of the effects come from 20% of the causes. this principle can be applied to business, economics, productivity, and other areas. in terms of business, it means that 80% of the results a company produces come from 20% of its efforts. this principle can be used to help business owners prioritize tasks and allocate resources more effectively. by understanding the 80/20 rule, businesses can identify the most important elements of their operations and focus their attention on those to achieve maximum efficiency.
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