What Is Meant by the Term Human Capital

question 141

Multiple Choice

What is meant by the term human capital?

• A)The sum of all assets owned by people.
• B)The accumulated skills and knowledge of human beings.
• C)The average age of those engaged in formal education.
• D)The amount of physical capital that each worker has to work with.

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Definitions:

Partnership Capital

The total amount of capital contributed by partners in a partnership, used in the business and subject to changes from profits, losses, and withdrawals.

Capital Balances

Refers to the amount of money that the owners of a company have invested in it.

Goodwill Method

An accounting method used to determine the value of a non-tangible asset acquired when one company buys another.

Profits and Losses

Financial terms representing the positive or negative financial outcomes resulting from a company's operations and activities.