Question

‘Reliable Transport Services Ltd.’ specialises in transporting fruits and vegetables. It has a good reputation in the market as it delivers the fruits and vegetables at the right time and at the right place.
A state with reason whether the working capital requirements of ‘Reliable Transport Services’ will be high or low.

Answer 1

The working capital requirement of Reliable Transport Services Ltd. will be low. This is because fruits and vegetables are perishable in nature and thus there is no need of maintaining a large amount of stock.