Capital Intensive

Capital Intensive
A capital intensive business involves significant investment in fixed assets such as plant and machinery. These companies are regarded as high-risk investments, particularly in times of economic downturns, due to the high proportion of fixed costs.
Heavy Industry
Heavy industry refers to traditional production industries such as auto manufacturing, steel production, rubber processing, petroleum refining, and raw material extraction, which require massive capital investment and produce large quantities of goods. These industries employ large numbers of workers and often have significant environmental impacts.
Labor Intensive
Labor intensive refers to industries or companies where labor costs are a more significant component of total costs compared to capital expenditures.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.