Capital intensive companies have less risk because their relatively lower operating leverage suggests that they have already made large investments in capital assets.

Name: Capital intensive companies have less risk because their relatively lower operating leverage suggests that they have already made large investments in capital assets.
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Question

Quizplus · Accepted Answer

Capital intensive companies have higher risk due to high fixed costs and operating leverage, making them more sensitive to changes in revenue.

Capital Intensive Companies Have Less Risk Because Their Relatively Lower