Which of the following statements is correct?
A) An auto manufacturer is less capital intensive than a bakery.
B) An accounting firm is more capital intensive than a railroad.
C) An oil refinery is more capital intensive than Starbucks.
D) None of these.

Question

Quizplus · Accepted Answer

Capital intensive refers to the amount of capital investment required to start and operate a business. An oil refinery requires large amounts of capital investment in equipment and infrastructure, compared to a coffee shop like Starbucks, which requires relatively lesser amount of capital investment. Therefore, option C is the correct answer. Option A is incorrect because an auto manufacturer requires a large amount of capital investment in machinery, labor, and facilities. Option B is incorrect because a railroad company requires a significant investment in infrastructure such as tracks, trains, signaling, and stations.

Which of the Following Statements Is Correct