Which of the following is unlikely to have a high capital intensity ratio?
A)Railroad
B)Automobile manufacturer
C)Law firm
D)Shipbuilder

Question

Quizplus · Accepted Answer

Capital intensity ratio is the ratio of capital expenditures to labor expenses. Law firms typically have low capital expenditures and rely heavily on labor expenses, making them unlikely to have a high capital intensity ratio. Railroads, automobile manufacturers, and shipbuilders all have high capital expenditures in comparison to labor expenses, making them more likely to have a high capital intensity ratio.

Which of the Following Is Unlikely to Have a High