Intellectual Capital Is the Difference Between the Market Value and the Book

question 22

Multiple Choice

Intellectual capital is the difference between the market value and the book value of a firm. Intellectual capital can be increased by

• A) increasing retention of below average workers.
• B) attracting and retaining knowledgeable workers.
• C) decreasing labour costs.
• D) increasing the turnover of employees.

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Definitions:

Behavioral-Based

Pertains to assessment or interventions focusing on specific behaviors rather than traits or capabilities, often used in the context of performance management and hiring.

Job Satisfaction

The level of fulfillment, happiness, and contentment an employee feels towards their job.

Organizational Efficiency

The ability of an organization to implement its strategies and achieve its goals with minimum resources and waste.

Herzberg

Refers to Frederick Herzberg, a psychologist best known for developing the Motivation-Hygiene Theory, which distinguishes between factors that satisfy or dissatisfy employees in the workplace.