Mr Sunil has started a new business, he intends to spend a huge amount towards 'on-the-job training' of his workers before putting them to work. How do you justify the expenditure incurred on training the workers?

Solution

The act of Mr Sunil can be considered a source of human capital as he is actually investing money in training his workers who will help in the progress of his business. This is the right step for him as the skills and experience obtained by the workers through this training will enhance their productivity, bringing better remunerations to the company also it will help in the growth and expainsion of the business.

Regards,