ENTREPRENEURSHIP

INTRODUCTION TO ENTREPRENEURSHIP

IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Large investment is made in fixed assets, the project will be termed as ____
A
Capital Intensive.
B
Labour Intensive.
C
Product Intensive.
D
Market Intensive.
Explanation: 

Detailed explanation-1: -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-2: -Capital intensive project refers to the project which uses more capital, technology and skill manpower to complete the project within specified parameters (time, cost and quality). It require large amount of capital and less workforce in comparison to labor intensive project.

Detailed explanation-3: -Fixed capital is the portion of total capital outlay of a business invested in physical assets such as factories, vehicles, and machinery that stay in the business almost permanently, or, more technically, for more than one accounting period.

Detailed explanation-4: -What Is an Example of a Capital Intensive Industry? 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.

There is 1 question to complete.