A company that is capital intensive does which of the following?
A)has an altered fiscal strategy for overseas operations
B)spends more on equipment than on labour
C)makes better use of benchmarking than other types of business
D)creates employment monopolies

Question

Quizplus · Accepted Answer

A company that is capital intensive spends more money on technology, equipment, machinery, and infrastructure than on labor. This means that their business model depends heavily on these fixed assets, and the success of their operations relies on the efficient and effective use of these resources. Similarly, they are more willing to invest in R&D, innovation, automation, and improvements in their supply chain and logistics, rather than rely on human resources to drive their growth. This makes their operations more resilient, scalable and sustainable, but at the same time requires a significant upfront investment and ongoing maintenance costs.

A Company That Is Capital Intensive Does Which of the Following