08 Explain the difference between a labour-intensive and a capital-intensive business.

[Aayan Zaidi]

KN: A labour - intensive business depends more on workers to produce goods and services, while a capital - intensive business relies more on machines and equipment.
APP: E.g a restaurant is labour - intensive because it needs many staff, but a car factory is capital - intensive because it uses machines.
AN: So, labour - intensive firms have higher wage costs, capital - intensive ones spend more on machinery and maintenance.
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[MuhammadAli91191]

[KN]Labour-intensive businesses rely more on human workers than machines to produce goods or services whereas Capital-intensive businesses depend more on machinery, equipment.
[APP]A clothing factory in Pakistan is labour-intensive because it relies on many workers to sew garments by hand. In contrast, a car manufacturing company like Toyota is capital-intensive since it uses expensive machines and robots to assemble vehicles.
[AN]Labour-intensive businesses often benefit from lower equipment costs and can create more jobs, which helps reduce unemployment and capital-intensive businesses, on the other hand, can produce goods faster and more efficiently, reducing long-term costs.
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[Shaliza khawaja]

labour intensive business relays on humans whereas a capital intensive business relays on machines
for example a handmade carpet making industry is labour intensive whereas a car industry is capital intensive
labour intensive business have higher wages whereas capital intensive business have lower wages but high cost for machines, labour intensive industries take longer to complete task as compared to capital intensive who get done sooner due to machine, Labour intensive busienss also has lower output as compared to capital intensive
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[Shuraim Arif]

(KN) Labour intensive businesses usually rely on humans to do their work whereas capital intensive businesses rely on machines.
(APP) For example, a local restaurant that employs human workers to serve food, cook food and cleaning staff. On the other hand, a high end restaurant may use robots to do the same task.
(AN) This usually leads to huge differences in the efficiency of both restaurants. The high end restaurant would be far more productive as compared to the small local restaurant as tasks can be completed a lot quicker and the time wasted in breaks or shift changes is saved as robots dont need regular breaks or shift changes. Furthermore, there is less chances of human error in capital intensive businesses, leading to satisfied customers, eventually making them loyal to the high end restaurant that uses robots, making it a lot more profitable.
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[M huzaifa jillani]

(KN)
A labour intensive business uses more human workers compared to machinery while a capital intensive business relies more on machines and equipment than on people.
(APP)
For example a clothing factory that depends on trailors to stich clothes by hand is labour intensive whereas a car manufacturing company like Toyota that uses robots and assembly machines is capital intensive.
(AN)
This shows that labour intensive business have higher wage costs but can easily adjust to customer demand while capital intensive firms have higher investment costs but can produce goods faster and more efficiently.
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[Mamoona Hussain]

KN: Labour intensive businesses' production relies mostly on labour whereas the capital intensive businesses use machinery and automation to produce a their goods and services.
APP: For instance, a furniture factory that employs hundreds of people to manufacture furniture is labour intensive and a car manufacturer that uses complex machinery to manufacture cars is a capital intensive business.
AN: Due to this, the car manufacturer can earn more produce more cars in lesser time, which increase sales, revenue and profit margins which can be later used to grow and expand, increasing customer base, therefore improving brand image, and ensuring long term survival. However, this is difficult for the furniture manufacturer as they have to pay the wages and salaries along with the bills which leaves little finance for growth in most cases.
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[AliAzeem]

[KN]labour intensive business is mostly reliant on labour while capital intensive business relies more on machinery.
[APP]For example a factory which uses more machinery for its operations will be capital intensive while an accounting firm will be labour intensive.
[AN]Both labour and capital intensive businesses have their strengths.capital intensive will have more efficiency and accuracy ensuring high quality output while labour intensive will have lower long run costs leading to higher profit margins.
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[hassanalizafar]

[KN] A labour intensive business mainly depends on human workers (physical affect), while a capital intensive business relies more on machines and equipment.
[APP] For instance, a restaurant uses many chefs and waiters to serve customers whereas a car factory uses robots and automated systems for production.
[AN] This shows that labourintensive firms may have higher wage costs but can offer more personal service while capital intensive firms can produce more efficiently which reduce errors which boost output hence lower costs of production which attract investors and expand more easily.
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[Dania Farooq]

[KN] A labour intensive business depends mainly on human workers to produce goods or provide services while a capital intensive business relies more on machines nd equipment.
[APP] For eg, a restaurant that employs many chefs and waiters is labour intensive however a car factory that uses robots nd automated machines to assemble vehicles is capital intensive.
[AN] The main difference is that labourintensive businesses hv higher labour costs nd need more workers while capital intensive ones have higher investment in machinery but it can produce goods faster and in larger quantity.
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[sarah_naeem]

[KN]: Labour-intensive businesses rely more on human workers rather than machinery to produces goods and provide services while capital-intensive businesses depend more on machinery than human/labour work.
[APP]: For example, a restaurant has chef and many employees like waiters that provide services whereas a factory has more advanced machinery for production rather than many employees.
[AN]: Thus, both firms have their owns benefits and disadvantages. Capital-intensive businesses lead to work being done faster, less wastage of time, it also reduces the chances of errors leading the business to be more successful and have long term growth whereas labour-intensive businesses has more employment opportunities and higher wages which lead to better living standards of people and reduces poverty.

[Areeba Arshad]

[KN] A labour-intensive business depends mainly on human workers to produce goods or services, while a capital-intensive business relies more on machinery and equipment.
[APP] For example, a restaurant is labour-intensive because it needs many chefs and waiters, whereas a car factory is capital-intensive because it uses advanced machines and robots.
[AN] This means labour-intensive firms have higher wage costs but more flexibility, while capital-intensive firms have high setup costs but greater efficiency, showing how each relies on different resources to operate effectively.

[Tuqwa]

Businesses can be classified as labour intensive or capital intensive based on the main resources they use in production.
app:A labournintensive business relies mainly on human workers forexample a restaurant depends on many waiters and chefs to serve customers. In contrast a capital intensive business relies more on machinery and equipment such as a car factory that uses robots for production.
This means that labour intensive firms spend more on wages while capital intensive firms invest heavily in machines and technology to improve efficiency.

[Subhan Zafar]

{KN}A labor-intensive business relies more on human workers to produce goods or services, while a capital-intensive business relies more on machinery, equipment, and technology.
{APP}For example, a hotel is labor-intensive because it depends heavily on staff such as cleaners, receptionists, and chefs to deliver services. In contrast, a car manufacturing company like Toyota is capital-intensive as it uses expensive machinery and robots to assemble cars.
{AN}This means labor-intensive firms usually have higher labour costs and are affected more by wage changes, while capital-intensive firms have higher fixed costs but benefit from greater efficiency and productivity.