Which Answer Best Describes the Peter Principle

question 57

Multiple Choice

Which answer best describes the Peter principle?

• A) The more a bureaucracy tries to be efficient, the more forms there are to fill out.
• B) Never underestimate the power of the secretary.
• C) Employees tend to rise to their level of incompetence.
• D) Work expands to fill the available time.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Interest Rate

The percentage of a sum of money charged for its use, often expressed annually, affecting loans and savings.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Present Value

The present value is the current value of a future sum of money or stream of cash flows, discounted at a specified rate of interest.