Question 1 Midterm

1. The five kinds of assets or capital that organizations can leverage to add value to their operations are: financial capital/assets, physical capital/assets, market capital/assets, operational capital/assets, and human capital/assets. These types are measured from easy to more difficult. The easiest financial, then there’s the physical, followed by market, then operational and finally the more difficult to measure is the human capital/assets.

The financial capital/assets are those that involve equity, securities and investments, and accounts receivable.

The physical capital/assets are those that involve plants, land, equipment, and raw materials.

The market capital/assets are those that involve goodwill, branding, customer loyalty, product line, and distribution networks, patents/trademarks/copyrights.

The operational capital/assets are those that involve management practices, structure of work, and technology.

Finally, the human capital/assets are those that involve education, knowledge, skills, competencies, work habits and motivation, and personal relationships.

The financial and physical assets/capital are moderately simple to quantify by means of bookkeeping rehearses. The majority of these assets are unmistakable and have some reasonable market esteem. market and operational assets/capital are more testing to gauge, yet bookkeeping hones have been created that can put a general subjective incentive on such assets. Human assets/capital, be that as it may, are exceptionally hard to quantify; endeavors to do as such are at the front line of momentum inquire about being directed in human assets administration.

An immediate consequence of this trouble in measuring human assets is that the valuation of present and future human assets is frequently overlooked from thought when associations are confronting monetary and financial difficulties.