SQA National 5 Business Management Practice Exam 2025 – All-in-One Prep Guide

The correct answer is capital intensive. This term specifically refers to a production process that relies heavily on machinery and equipment rather than human labor. In capital intensive industries, the majority of the investment is in physical assets, which are used to produce goods or services. This can lead to higher efficiency, reduced labor costs, and increased production rates, as machines can operate continuously and often with greater precision than human workers.

The context of the other terms can help clarify why capital intensive is the best choice. Labour intensive refers to processes that require a significant amount of human work. Job production focuses on creating custom products one at a time, which often involves more manual labor. Batch production entails producing items in groups or batches, which again can involve a mix of both human and machine labor. While both batch and job production can utilize machines, they still depend heavily on human input, distinguishing them from capital intensive methods where machines dominate the production process.