‘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.
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.