Which of the Following Best Captures the "Peter Principle

question 48

Multiple Choice

Which of the following best captures the "Peter Principle"?

• A) Through natural selection, incompetent employees tend to turn over.
• B) When promoting based on past performance and seniority, employees will be promoted regularly until they are promoted to a position where they cannot perform well.
• C) Incompetence breeds incompetence.
• D) Managers who are incompetent tend to produce situations where there are more grievances, more voluntary turnover, more absenteeism, and more harassment.

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Definitions:

Expanding Current Operations

The process of increasing the scale or scope of a company's business activities.

Accrued Interest

The accumulation of interest on a loan or bond since the last payment date but not yet paid out to the lender.

Gain on Sale of Investments

The profit realized from selling investments for more than the purchase price.

Investments-Evans Company Bonds

Specific long-term investments made in the bonds issued by Evans Company.