Capital Intensity in an Industry Refers to

question 28

Multiple Choice

Capital intensity in an industry refers to

• A) the number of cities in a market area that are capitals of the states in which they are located.
• B) the number of people who live in the market area of the business.
• C) the percentage of market share controlled by the large companies.
• D) the degree to which an industry requires money as compared to labor to produce the products or services.
• E) the stages of an industry's life cycle.

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Definitions:

Customers

Individuals or entities that purchase goods or services from a business, essentially driving the revenue of the company.

Miller-Orr Model

A financial model used to manage cash balances, determining the optimal point to transfer funds in and out of a non-interest bearing cash account.

Cash Balance Target

A strategy where a company aims to maintain a specific amount of cash on hand to meet operational and emergency needs.

Weekly Interest Rate

An interest rate quoted or applied on a weekly basis, often used in short-term loans or savings accounts to indicate the rate of interest over a week's period.