CLEP Principles of Management Exam Prep

Answer - D - The Pareto principle does assert that 80% of the consequences can be attributed to 20% of causes. It is also referred as the 80/20 rule.

Key Takeaway: Option A refers to Kaoru Ishikawa’s TQM philosophy and is unrelated to cause and effects. Option B is the not the best response, since the statement that quality is achieved by prevention, not appraisal is one of Philip B. Crosby’s four absolutes of quality management. Option C describes the “Peter Principle,” the belief that individuals tend to be promoted up to their “level of incompetence” within organizations.