Which of the following is an accurate definition of human capital?
A) It represents the knowledge that a company's customers have about its products.
B) It refers to the knowledge stored as documentation about patents, contracts, and policies.
C) It consists of competencies and knowledge possessed by the organization's employees.
D) It refers to the number and quality of all the relationships an organization's employees maintain.

Question

Quizplus · Accepted Answer

Human capital refers to the competencies and knowledge possessed by the organization's employees, including their education, experience, and training. It is considered a valuable asset for organizations as it can enhance their productivity and competitiveness.

Option A is incorrect because the knowledge that customers have about a company's products is not considered a part of human capital.

Option B is incorrect because the documentation of patents, contracts and policies may be considered as intellectual capital, which is a different concept from human capital.

Option D is incorrect because relationships are not considered as human capital. However, social capital refers to the value of relationships and connections that individuals have with others and can also contribute to an organization's success.

Which of the Following Is an Accurate Definition of Human