What Does It Mean If an Organization's Human Capital ROI

question 31

Multiple Choice

What does it mean if an organization's human capital ROI is $3?

• A) For every dollar an organization invests in human capital, the employees will generate $3 in return.
• B) For every dollar an organization invests in human capital, the employees will generate $3 in revenue.
• C) For every dollar an organization invests in human capital, the employees will generate $3 in capital assets.
• D) For every dollar an organization invests in human capital, the employees will generate $3 in productivity.

---

Definitions:

Sacrificed Output

The production or output that is given up as a consequence of choosing one option over another, often discussed in opportunity cost analysis.

Tax

A compulsory financial charge or other levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Net Value

Net value is the difference between the total assets and total liabilities of a company or individual, indicating the actual worth.

Excise Tax

A type of tax charged on goods and services produced within a country, often imposed on specific items like tobacco and alcohol.