WEP

Correct Answer: Immediately implement a more secure encryption protocol, like WPA3.

The best approach in this situation is to 'Immediately implement a more secure encryption protocol, like WPA3'. As the company deals with sensitive data, the security of the wireless network is paramount. WEP (Wired Equivalent Privacy) is an outdated protocol that has been proven to be easily hackable. Therefore, it is not suitable for a company that deals with sensitive data. A more secure encryption protocol such as WPA3 (Wi-Fi Protected Access 3) should be implemented immediately to ensure the security of the network. The other answers are not advisable because 'Continuing to use WEP since it still offers some level of encryption' or 'Informing the employees about the risks of WEP and hoping for the best' do not address the risk appropriately, and 'Disabling encryption to avoid any chance of data compromise' would only make the situation worse by making the network completely unprotected.

Correct Answer: WPA2

The best option to replace WEP for a more secure wireless protocol is WPA2. WPA2 stands for Wi-Fi Protected Access 2, and it is a significant improvement on WEP in terms of complexity and security. It implements the mandatory elements of 802.11i. In particular, it introduces a new AES-based algorithm, CCMP, which is considered fully secure. On the other hand, WPA and TKIP are older protocols that are not as secure as WPA2. WPA is a predecessor to WPA2 and is now considered deprecated. TKIP is an encryption protocol included as part of WPA, and it is also less secure than WPA2. AES is a secure encryption algorithm used in WPA2 but is not a protocol itself, hence it cannot replace WEP.

Correct Answer: Weak encryption and vulnerability to attacks

The problem with using WEP (Wired Equivalent Privacy) on a company’s wireless network is that it has weak encryption and is vulnerable to attacks. Modern hacking tools can crack a WEP key very quickly, thereby compromising the network's security. WEP is an outdated and insecure protocol, and its use is not recommended. It should be replaced by more secure protocols, like WPA2 or WPA3. The other answers are not as pertinent in context of WEP. High latency is not a characteristic trait of WEP, it’s primarily related to network congestion or faulty hardware or software. Frequent disconnections can be due to many factors, but it is not inherently associated with the use of WEP. Similarly, WEP doesn't limit device compatibility. Most devices aim to support all types of encryption protocols, even those that are outdated. Therefore, the problem of 'limited device compatibility' is not specific or unique to WEP.