Certified Financial Management Specialist Practice Exam

What does the acquisition of human capital entail for a business?

1. Increasing the number of products offered.

2. Hiring skilled workers to enhance business operations.

3. Decreasing the overall workforce.

4. Increasing production capabilities.

The correct answer is: Hiring skilled workers to enhance business operations.

Acquisition of human capital is fundamentally about enhancing the skills, knowledge, and abilities of the workforce within a business. When a company focuses on hiring skilled workers, it is making a strategic investment in its human resources, which can lead to improved efficiency, innovation, and competitiveness in the market. Skilled workers can bring new perspectives, expertise, and problem-solving abilities that directly enhance business operations. This investment in human capital ultimately aims to drive better performance outcomes, as a well-trained and knowledgeable workforce is essential for executing the company's objectives and adapting to changes in the business environment. Moreover, by hiring individuals who possess the right skills and experience, a business can optimize its processes, improve service delivery, and ultimately deliver greater value to customers, contributing to long-term success. The other options, while relevant to business operations, do not specifically address the concept of human capital acquisition. Increasing product offerings, adjusting workforce size, or enhancing production capabilities could involve various operational strategies but are not directly linked to the strategic hiring and development of skilled workers that define human capital enhancement.