Intellectual capital refers to:
A)how much money an organization spends on training and development.
B)the stock knowledge that resides in an organization.
C)the percentage of information available that is actually used productively by the organization.
D)the total cost of computers and other 'intelligent' machines in the organization.
E)the cost of hiring a typical employee.

Question

Quizplus · Accepted Answer

Intellectual capital refers to the knowledge, expertise and other intangible assets that an organization possesses. It includes the stock knowledge that resides in an organization, such as patents, trademarks, copyrights, trade secrets, and other proprietary information.

Option A is incorrect because training and development expenditure is just one part of intellectual capital.

Option C is incorrect because intellectual capital is not limited to information only, but includes knowledge, skills and expertise that can be used for productive purposes.

Option D is incorrect because the cost of computers and other machines is a part of fixed assets and not intellectual capital.

Option E is incorrect because the cost of hiring employees is not related to intellectual capital directly.

Intellectual Capital Refers To