General Motors has just sold a new line of robots to manufacture cars to Indian auto company Tata Motors. This purchase can be described as capital intensive. What will this mean for Tata Motors?
A)Tata Motors will have an altered fiscal strategy for overseas operations.
B)Tata Motors will spend more on equipment than on labour.
C)Tata Motors will make better use of benchmarking than other types of business.
D)Tata Motors will create employment monopolies.

Question

Quizplus · Accepted Answer

The purchase of a new line of robots to manufacture cars indicates that Tata Motors will be spending more on equipment than on labor, making it a capital-intensive strategy. This will likely lead to increased efficiency and productivity but may also require significant upfront investment.

General Motors Has Just Sold a New Line of Robots