Question

A Large firm trading in biscuits will require:

(a) Seasonal working capital.

(b) Special working capital.

(c) Large amount of working capital.

(d) Small amount of working capital.​

Answer 1

Answer:

Answer is option c. Large amount of working capital

Answer 2

A Large firm trading in biscuits will require small amount of working capital.

• For setting up a large biscuit firm, small working capital will be required because it is a full year business and trading in it requires small working capital.
• There is only trading in biscuits and not manufacture of biscuits so not much working capital is required.
• Working capital, in a nutshell, is the cash on hand to pay your immediate, short-term obligations.
• You must estimate your present levels, forecast your future requirements, and think of strategies to ensure that you always have adequate cash on hand if you want to make sure that your working capital serves your demands.
• If it would have been a manufacturing firm, then more capital would have been required.

A Large firm trading in biscuits will require small amount of working capital.

#SPJ2