Question

Which statement correctly compares the two businesses? In Case will require a less costly investment in labor, while Wrap It Up will require less capital in the long term. In Case will require less capital in the long term, while Wrap It Up will require a less costly investment in labor. In Case will require a more costly investment in land, while Wrap It Up will have higher inventory costs. In Case will have higher inventory costs, while Wrap It Up will require a more costly investment in land.

Answer 1

The correct answer is In Case will require a less costly investment in labor, while Wrap It Up will require less capital in the long term.

Explanation: They are comparing different things but in the same purpose. Which actually makes the comparison valid and correct.

Answer 2

Answer:

In Case will require a less costly investment in labor, while Wrap It Up will require less capital in the long term.

Explanation:

Capital in this context would mean money or assets as in factors of production owned by the businesses. This invariably means that labour falls under capital.

The above statement correctly compares the two businesses therefore since In Case's reduced labour cost is synonymous to reduced capital expenses as in Wrap it Up.