When the prices are rising continuously in the market then what will be the Working Capital requirement for a Trading company?

High working Capital

The correct answer is Option (2) → High working Capital.

When prices are rising continuously in the market (inflation), the Working Capital requirement for a Trading company will be High working Capital.

This is because, with rising prices, the cost of goods and raw materials increases, and the company may need more funds to maintain inventory and manage day-to-day operations. Additionally, to keep up with increased costs and to avoid shortages or production delays, the company would require more working capital to fund operations.