Question

State whether the following require small or large working capital. Answer should be supported by a valid reason:
(i) Selling ice-creams
(ii) Following a liberal credit policy
(iii) Dealing in stainless steel wares
(iv) Using capital intensive technology

Answer 1

Answer:

Hello mate

Here selling ice creams is small working capital because here total money earned is very low then expected

Following a liberal credit policy is large working capital because here many of people take loan and policy company is dependent upon people loan.

Dealing in stainless steel wares is also large working capital because here also a large company earns good income

Using Capital Intensive technology is also large working capital because here large amount of money is used in ordor to set up a good business of an entrepreneur person.

Hope it might helps.

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