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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’.

Answer:

In the above case Amrit is running a ‘Transport service’ which operates on larger scale, and it will require large amount of working capital. Hence, the working capital requirement of the firm will be more.


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