QI. Consider two companies: One company, you are operating, which is a pizza base
manufacturing business. The early morning schedule is very busy as the product is
dispatched as soon as it is made to keep it fresh and is sent to the various pizza making
restaurants or hotels. Daily fresh pizza base has to be delivered on the basis of estimated
orders as there is no sure shot consumption pattern in the city.
Second company your friend is running, which is a premium sweater making company.
The sweaters are worn in many countries and they are of very high quality. For six
months of the year the company is almost without work but the remaining six months it is
preparing almost 10 million sweaters for its customers in different parts of the
world.
busy in
a) What do you think is going to be the working capital requirement of these businesses
and Capital Expenditure Requirement? Why? Illustrate with hypothetical items and
figures.
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