Question

'Bharat Express' specialises in courier services. Its 'wide range of express package and parcel services' help business firms to make sure that the good are made available to the customer at the right time.
State with reason, whether the working capital requirements of 'Bharat Express' will be high or low

Answer 1

The working capital requirements of Bharat Express will be low as organizations dealing in services have shorter operating cycles, i.e., no processing is done in such organizations. Accordingly, they require low capital.