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.
A Capital Investment Budget outlines the funds allocated for significant investments in a company's long-term assets, such as property, plants, and equipment. These investments are typically intended to enhance a company's operational capacity, efficiency, and overall profitability.
Plant assets, also known as fixed assets, are composed of land, buildings, machinery, furniture, fixtures, and other equipment permanently employed in business operations. In some contexts, the term 'plant' may refer specifically to buildings or land and buildings.
