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‘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. - CBSE (Commerce) Class 12 - Business Studies

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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.

Solution

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.

  Is there an error in this question or solution?
Solution ‘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. Concept: Factors Affecting Fixed and Working Capital Requirements.
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