Companies that have a relatively large amount invested in assets to generate a given level of sales are considered capital-intensive.

Question

Quizplus · Accepted Answer

This statement is true. Capital-intensive companies require significant investment in assets, such as equipment and property, to generate a given level of sales. This is in contrast to labor-intensive companies, which require a larger workforce to generate the same level of sales.

Companies That Have a Relatively Large Amount Invested in Assets