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Amrit is Running a ‘Transport Service’ and Earning Good Returns by Providing this Service to Industries. - Business Studies

Short Note

Amrit is running a ‘transport service’ and earning good returns by providing this service to industries. Giving reason, state whether the working capital requirement of the firm will be ‘less’ or ‘more’.

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Working capital is the amount of capital required for meeting the day-to-day operations of the business. In this case, Amrit runs a Transport Service. This business operates on a large scale of operation, with a higher amount of inventory. He would require a large amount to working capital.

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NCERT Class 12 Business Studies Part 2 - Business Finance and Marketing
Chapter 1 Financial Management
Very Short Answer | Q 4 | Page 253
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