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Aarohan Ltd. An automobile manufacturer ...

Aarohan Ltd. An automobile manufacturer was diversifying into manufacturing two-wheelers. They knew that india is on a growth path and a new breed of consumer is eager for a first vehicle. The market responded very well to the new product. The company did not have to allow credit, as it had advance orders from four to six months with deposists paid. also, due to efficiency in managing their operations as soon as a vehicle was off the assembely line, it was out to the dealers. Give any one reson discussed above which helped the firm in managing its working capital efficiently.

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