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Question : 6
Total: 26
'Indian Logistics' has its own warehousing arrangements at key locations across the country. Its warehousing services help business firms to reduce their overheads, increase efficiency and cut down distribution time.
State with reason, whether the working capital requirements of 'Indian Logistics' will be high or low.
State with reason, whether the working capital requirements of 'Indian Logistics' will be high or low.
Solution:
The working capital requirement of 'Indian Logistics' will be high. This is because the company operates at a large scale and has its arrangement at key locations across the country. Also, it performs various activities to assist the business firms to increase efficiency and more. Thus, the working capital requirement of such a company will be high.
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