BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Capital intensive refers to a productive process that requires a high percentage of investment in fixed assets (machines, capital, plant) to produce. A capital-intensive production process will have a relatively low ratio of labour inputs and will have higher labour productivity (output per worker).

Detailed explanation-2: -What Is Capital Intensive? The term “capital intensive” refers to business processes or industries that require large amounts of investment to produce a good or service and thus have a high percentage of fixed assets, such as property, plant, and equipment (PP&E).

Detailed explanation-3: -Capital-intensive industries include automotive, airline, oil and gas, mining, manufacturing, and real estate. These companies all have to spend money on assets that are expensive, such as a factory or an airplane.

Detailed explanation-4: -A capital intensive business has a high fixed cost base, and so must generate a large amount of sales before it can turn a profit. This means that its breakeven point is high. A business with a high breakeven point is more likely to drop its prices in order to be assured of generating more sales.