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Jackson6612 Posted 18 years ago
Grammar

capital-intensive business, industry etc...

0 capital-intensive02br
00a capital-intensive business, industry etc needs a lot of money in order to operate properly 02br
00labour-intensive02br
00an industry or type of work that is labour-intensive needs a lot of workers02br
00[LDOCE]02br
00labor-intensive02br
00having high labor costs per unit of output; especially : requiring greater expenditure on labor than in capital02br
00[M-W's Col. Dic.]02br
02br
00If some business is labour-intensive, then it will also need some capital in order to pay for the wages because labourers will not be working for free. Then, doesn't it mean that a labour-intensive business will also be a capital-intensive business? 0-
  

Top answer

0No, of course all businesses require money coming in. This is just differentiating between ones that need a lot of money (for machinery etc) rather than wages, and those where the main costs are salaries. 02br 02br 00For example02br 02br 00Forgetting standard business costs such as premises etc -02br 02br 00Capital intensive: manufacturing company has to spend £3million pounds on manufacturing machines and robots, repairing them, maintaining them, replacing them, and only has to pay 5 staff to operate them at an annual cost of £100,000.

  • 0No, of course all businesses require money coming in.
  • This is just differentiating between ones that need a lot of money (for machinery etc) rather than wages, and those where the main costs are salaries.
  • 02br 02br 00For example02br 02br 00Forgetting standard business costs such as premises etc -02br 02br 00Capital intensive: manufacturing company has to spend £3million pounds on manufacturing machines and robots, repairing them, maintaining them, replacing them, and only has to pay 5 staff to operate them at an annual cost of £100,000.
  • 0-
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2 Answers
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0No, of course all businesses require money coming in. This is just differentiating between ones that need a lot of money (for machinery etc) rather than wages, and those where the main costs are salaries. The word 'intensive' shows where the majority of their financial resources are spent - on capital costs or on labour.02br
02br
00For example02br
02br
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0 Thank you, Nona. 0-

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