The Formula for Calculating Human Capital Return on Investment Is

question 79

True/False

The formula for calculating human capital return on investment is as follows: {revenue (operating expenses + [compensation - benefit costs])} / (compensation - benefit costs).

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Definitions:

Consolidation

The process of combining the financial statements of two or more entities into one set of financial statements, as if they were a single entity.

Subsidiary

A company that is controlled by another company, referred to as the parent company.

Net Assets

The total assets of an entity minus its total liabilities, representing the owners' equity in the company.

Parent Company

A company that holds a controlling interest in one or more other companies, referred to as subsidiaries, allowing it to control their operations and policies.