Human Capital, Business Ownership and Income Distribution

Knowledge economy is such that takes the production, distribution and utilization of information and knowledge as its bases. Knowledge will thwart the traditional capital and labor and become the most important productive factor or capital. The impact of knowledge economy on business finance is profound and lasting. How human capital owners participate in the business income distribution has an important bearing on the sustained development of knowledge based society as well as business firms. This article establishes the necessity and possibility of human capital participating in business income distribution and puts forward an alternative income distribution proposal.