The Strategic Role of Human Resource Involves Helping to Define

question 79

True/False

The strategic role of human resource involves helping to define the strategy relative to human capital and its contribution to organizational results.

---

Definitions:

Legal Bankruptcy

A legally declared inability or impairment of ability of an individual or organization to pay its creditors, which can lead to a legal process for resolution.

Technical Insolvency

A financial situation where an entity's liabilities exceed its assets but it continues to operate because it can meet its short-term obligations.

Accounting Insolvency

A situation where a company's total liabilities exceed its total assets, indicating difficulties in meeting financial obligations.

M&M Proposition I

Modigliani and Miller Proposition I states that under certain market conditions (no taxes, no bankruptcy costs), the value of a firm is not affected by how it is financed, whether by debt or equity.