Capital intensive companies have a relatively large amount invested in assets to generate a given level of sales.

Question

Quizplus · Accepted Answer

Capital intensive companies require a significant investment in physical assets such as machinery, equipment, and infrastructure to produce their goods or services. As a result, they have a higher fixed cost structure compared to companies that require less capital investment. This means that they need to generate a higher level of sales to cover their costs and make a profit. Therefore, the statement "Capital intensive companies have a relatively large amount invested in assets to generate a given level of sales" is true.

Capital Intensive Companies Have a Relatively Large Amount Invested in Assets