During a meeting, a CEO makes the following statement. Is there an error in the statement? If yes, explain.

Question

“We need to invest more into both human capital and physical capital, while also cutting costs, such as shortening the employee-training programs and reducing the Christmas bonuses.”

(1 point)
Responses

Yes, there is an error in the statement. It is not possible to invest in both human capital and physical capital at the same time since any investment in one type of capital is a reduction in the other.
Yes, there is an error in the statement. It is not possible to invest in both human capital and physical capital at the same time since any investment in one type of capital is a reduction in the other.

Yes, there is an error in the statement. Reducing the Christmas bonus would cut back on physical capital instead of the stated goal of investing more in it.
Yes, there is an error in the statement. Reducing the Christmas bonus would cut back on physical capital instead of the stated goal of investing more in it.

No, there is no error in the statement.
No, there is no error in the statement.

Yes, there is an error in the statement. Shortening the employee-training programs would cut back on human capital instead of the stated goal of investing more in it.

Answer 1

Yes, there is an error in the statement. Shortening the employee-training programs would cut back on human capital instead of the stated goal of investing more in it.

In this statement, the CEO is suggesting investing in human capital (which refers to training, education, and skills development of employees) while simultaneously proposing to shorten employee-training programs. This contradicts the goal of investing more in human capital since reducing the length or quality of training programs would likely weaken the development of employees and their skills, which is counterproductive to the stated investment goal.