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

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Question

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’.

Short/Brief Note
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Solution

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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Chapter 9: Financial Management - Very Short Answer [Page 253]

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NCERT Business Studies Part 2 Business Finance and Marketing [English] Class 12
Chapter 9 Financial Management
Very Short Answer | Q 4 | Page 253

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