Final answer:
The provided statement incorrectly defines compensation. The correct definition involves making up for weaknesses by excelling in other areas, not blaming others for personal faults. The correct answer is B. False.
Step-by-step explanation:
The statement describes the notion of scapegoating, which is a psychological defense mechanism where an individual projects their own faults onto another person or group. This is not the same as compensation, which is a different type of defense mechanism. The description given portrays examples of denial of responsibility and scapegoat theory, which are related to stress but do not correctly define compensation.
Compensation more accurately refers to an effort to make up for perceived deficiencies by excelling in another area. For instance, if a student is poor at sports, they might compensate by excelling academically. The example provided about the businessman feels more akin to a rationalization for not confronting his perceived underpayment.