Which of the following statements regarding capital intensity is NOT true?
A)Capital intensity can be a prohibitive investment for low-volume operations.
B)Decreased amounts of automation increase capital intensity.
C)Automation refers to a system or piece of equipment that is self-regulating and self-acting.
D)Leasing is a method to acquire equipment while defraying financial risk.

Question

Quizplus · Accepted Answer

Decreased amounts of automation generally lead to lower capital intensity because less expensive and complex equipment is used. The other statements are true: A) capital intensity can be a challenge for low-volume operations that cannot justify the high cost of automated equipment, C) automation refers to self-regulating equipment, and D) leasing is a method to reduce financial risk when acquiring equipment.

Which of the Following Statements Regarding Capital Intensity Is NOT