Tanya is a CEO of a readymade garments business. Currently her business is at its boom and her sales are also very high. What would be the requirement of working capital in her business in current scenario ? |
Low High Stable/Uniform throughout the year Very Low |
High |
The correct answer is option (2) : High In a scenario where a business is at its boom, experiencing high sales, and likely dealing with increased operational activities, the requirement for working capital would typically be '12. High." High sales and increased business activities often require higher working capital to finance the day-to-day operations, manage increased inventory, and meet the demands of a growing customer base. Working capital provides the liquidity necessary to cover expenses, pay suppliers, and sustain operations during period of high activity. |