English

'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. - Business Studies

Advertisements
Advertisements

Question

'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.

A 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 as the company operates at large-scale and has its own warehousing arrangements at key locations across the country.

shaalaa.com
Factors Affecting Fixed and Working Capital Requirements
  Is there an error in this question or solution?
2014-2015 (March) Delhi Set 1

RELATED QUESTIONS

Big retail stores requires large amount of ............................. capital.

  1. Fixed
  2. Working
  3. Loan

‘Best Bulbs Pvt. Ltd. was manufacturing good quality LED bulbs and catering to local market. The current production of the company is 800 bulbs a day. Sumit, the marketing manager of the company surveyed the market and decided to supply the bulbs to five-star-hotels also. He anticipated the higher demand in future and decided to buy a sophisticated machine to further improve the quality and quantity of the bulbs produced.

Identify the factor affecting fixed capital requirements of the company.


Answer the following question.
Explain briefly any four factors affecting the fixed capital requirements of an organisation.


‘Reliable Transport Services Ltd.’ specialises in transporting fruits and vegetables. It has a good reputation in the market as it delivers the fruits and vegetables at the right time and at the right place.
A state with reason whether the working capital requirements of ‘Reliable Transport Services’ will be high or low.


How does 'Inflation' affect the working capital requirements of a company? State.


Explain the following as factor affecting the requirements of fixed capital:

Natural of business


Explain the following as factor affecting the requirements of fixed capital:

Diversification


Explain the following as factor affecting the requirements of fixed capital:

Level of collaboration


Explain the following as factor affecting the requirement of working capital:

Business cycle


Explain the following as factor affecting the requirements of working capital:

Operating efficiency


Explain the following as factor affecting the requirements of working capital:

Availability of raw material


What is Working Capital? Factors affecting requirement of Working capital?


List any three factors affecting the Working Capital requirement of a company.


Which fund in an organisation possess finance for day to day operations


Bright Bulbs Pvt. Ltd., is manufacturing good quality LED bulbs and catering to the local market. The current production of the company is 1,000 bulbs a day. Anita, the marketing manager of the company, surveyed the market and decided to supply the bulbs to five-star-hotels also. She anticipated the higher demand in future and decided to buy a sophisticated machine to further improve the quality and quantity of the bulbs produced. Which factor affected the fixed capital requirements of the company?


State any three factors that determine the requirement of fixed capital of a company.


Match the factors affecting fixed capital requirements given in Column - I with their explanations given in Column - II:

  Column - I   Column - II
(A) Nature of Business  (i) A trading organisation needs lower investments in fixed assets as compared to a manufacturing organisation.
(B) Technology upgradation (iii) A textile manufacturing company is installing a cement manufacturing plant and thus its investments in fixed assets is increasing.
(C) Diversification (iii) A capital-intensive organisation requires higher investments in fixed assets as compared to labour- intensive organisation.
(D) Choice of Technique (iv) Mobile phones became obsolete faster and are replaced much sooner than furniture or many other assets. Hence, these type of businesses require more fixed capital.

The capital structure of XYZ Ltd. is highly geared. Explain any four factors that were considered by its Finance Manager while formulating such a capital structure for the company.


Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×