Which of the Following Is the Best Example of an Investment

question 63

Multiple Choice

Which of the following is the best example of an investment in human capital?

• A)an increase in the number of hours worked per week by worker in a job employing low-skilled labor
• B)the purchase of company stock by a worker
• C)a summer internship at a law firm filled by someone attending law school
• D)payments into a retirement pension plan by a skilled laborer
• E)the purchase of a vehicle by an employee in order to commute to work

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Definitions:

Dividends

Distributions by a company to its shareholders, consisting of a share of the company's profits.

Historical Rates

The exchange rates from past periods used for translating transactions in foreign currencies or financial statements of foreign operations.

Transaction Exposure

The potential risk of exchange rate movements affecting the value of a company's financial transactions denominated in foreign currencies.

Risk Exposure

The extent to which an entity is vulnerable to losses from operational, financial, or market-related risks.