Firms that are not highly capital intensive tend to riskier than similar firms that use less fixed assets.

Question

Quizplus · Accepted Answer

Firms that are highly capital intensive have a higher risk due to the high fixed costs associated with maintaining and operating those assets. Firms that are not highly capital intensive are typically less risky because they have fewer fixed costs and are more flexible in responding to changes in the market.

Firms That Are Not Highly Capital Intensive Tend to Riskier