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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.
- Being a public utility service provider, will it need less working capital or more?
- Being a public utility service provider, will it need more Fixed Capital?
- Give one example of public utility service that you come across on day-to-day basis.
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Solution
- Being a public utility service provider, it will need less working capital.
- Yes. Being a public utility service provider, it will need more fixed capital.
- BEST Brihanmumbai Electric Supply and Transport undertaking is an example of public utility service.
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