Which of the Following Best Summarizes the Peter Principle

question 25

Multiple Choice

Which of the following best summarizes the Peter Principle?

• A)Firms often promote competent employees to levels beyond their abilities.
• B)Promotion decisions should stem from talent management activities.
• C)Firms should promote employees exclusively on past accomplishments.
• D)Women are more likely to be promoted if they have mentor/sponsors.

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Definitions:

Compensation Expense

The total cost incurred by a business to pay its employees, including wages, benefits, bonuses, and taxes.

Common Stock

Equity ownership in a corporation, with voting rights and the potential for dividends, representing a claim on a portion of the company's assets and earnings.

Fair Value

The estimated market value of an asset, based on current prices in an open and competitive market.

Stock Option Plan

A scheme offered by a company to its employees, allowing them to purchase company shares at a predetermined price after a set period.