What characterizes a business that uses labour-intensive production?

Prepare for the SQA Higher Business Exam with our comprehensive quiz! Utilize flashcards and multiple-choice questions, each complete with hints and explanations, to ensure you’re ready to ace your exam.

A business characterized by labour-intensive production relies significantly on human labor to produce goods and services, rather than relying heavily on machines and automation. This approach typically involves a greater number of employees actively participating in the production process, where tasks may require manual skills or craftsmanship.

In such businesses, the emphasis is on the workforce's capabilities, as they often perform tasks that cannot be easily automated or require a level of creative input and attention to detail that machines may not replicate effectively. This kind of production is often found in industries like textiles, agriculture, and handcrafted products, where the human element is essential for quality and overall output.

The other choices reference different production methods or focuses that do not align with the characteristics of a labour-intensive approach. For instance, heavy automation and technology-based processes indicate capital-intensive production rather than labour-intensive. Similarly, focusing on sustainability might be an operational goal across various production types and does not specifically denote a labour-intensive approach.

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