Question

Small scale business is capital intensive industry. (State with reason whether the given statement is true or false)

Answer 1

Small scale business is a capital intensive industry.

Such industries are those where the major costs are created from the investments which are done on machinery, equipment or other capital expensive assets.

They develop an asset structure which can be represented by the building, land, equipment, pants, heavy equipment and vehicles.  

The growth or fate of small industries are totally dependent on the investment  and hence it is capital intensive.