Question

Study the following case/situation and express your opinion.

The management of 'Maharashtra State Road Transport Corporation', wants to determine the size of working capital.

1. Being a public utility service provider, will it need less working capital or more?
2. Being a public utility service provider, will it need more Fixed Capital?
3. Give one example of public utility service that you come across on day-to-day basis.

Answer 1

1. Being a public utility service provider, it will need less working capital.
2. Yes. Being a public utility service provider, it will need more fixed capital.
3. BEST Brihanmumbai Electric Supply and Transport undertaking is an example of public utility service.