'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.
State with reason, whether the working capital requirements of 'Indian Logistics' will be high or low?

Open in App

Solution

The working capital requirement of Indian Logistic will be low because the company has its own warehouses and it is not required to pay the rent required for warehousing services.Few others expenses may also be cut down because of this advantegeous position.

Suggest Corrections

Similar questions

Q. '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

Q. Harish is engaged in warehousing business and his warehouses are generally used by businessmen to store fruits. Identify the working capital requirements of Harish giving reason in support of your answer. Further Harsh wants to expand and diversify his warehousing business.

Explain any two factors that will affect his capital requirements.

Q. Pankaj is engaged in Warehousing-Business. Identify the working capital requirements of Pankaj stating the reason in support of your answer. Pankaj is also planning to start his Transport business.
Explain any two factors that will affect his fixed capital requirements.

Manish is engaged in the business of garments manufacturing. Generally, he used to sell his garments in Delhi. Identify the working capital requirements of Manish. Further, Manish wants to expand and diversify into warehousing business. Explain any two factors that will affect his fixed capital requirements.

Q. Logistics costs have been one of the biggest stumbling blocks for the Indian economy. In this context, how draft national logistics policy 2018 and implementation of GST will help in reducing logistics costs and provide stimulus to the growth of the logistics sector.

Join BYJU'S Learning Program