What is the difference between Labour and Capital?
- Labour
is the amount of work needed to so something, such as how many man-hours it
takes to produce a bed.
-
Capital is cash that the business can spend to
produce more and thus sell more.
-
In business capital intensive would mean it takes a
lot of cash to start up and produce, for example, an oil refinery would
be capital intensive as huge amount of cash is needed to start producing.
-
Labour intensive could be a workshop producing
clothes, lots of people are needed (their labour) in order to produce the
clothes needed in the business.