Attracting and Retaining Human Capital Is a Challenge for Many

question 110

Multiple Choice

Attracting and retaining human capital is a challenge for many firms today.Firms experiencing high turnover should

• A) focus on increased recruiting.
• B) decrease money spent on human capital.
• C) adopt effective retention strategies.
• D) make their work environment less stimulating.

---

Definitions:

Residual Income

The income that remains after deducting all required costs of capital from the operating income.

Imputed Interest

The interest that is considered or assumed to be charged on an interest-free loan or bond, often for tax calculations.

Residual Income

The income that remains after subtracting all the costs of capital from the net operating income.

Net Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profitability from operations.