Question

Investment in human capital is very similar to investing in physical capital. True or false? Explain your answer.

Answer 1

Answer:

True.

Explanation:

This statement is true because investing in human capital and physical capital has the similarity that these assets will lead the organization to carry out its processes, achieve its objectives and goals, and generate liquidity, therefore the similarity is in the importance of capital for the organization.

Human capital can be more difficult to measure, as it is intangible, and physical capital is easier to measure and analyze what the return provides for organizational activities.

However, there are ways to measure how human capital positively impacts the company, so it is necessary to have an effective management that provides the best investment of the ideal human and physical capital for your needs.