Working Capital Management Question:
Explain what factors affect working capital requirement?
Answer:
Factors affecting working capital requirement:
1) Nature of business
2) Size of the organization
3) Phase of trade cycles
4) Production policies
5) Turnover of inventories
6) Dividend Policies
7) Trading terms
8) Length of production cycle
9) Profitability
10) Seasonal Variations.
1) Nature of business
2) Size of the organization
3) Phase of trade cycles
4) Production policies
5) Turnover of inventories
6) Dividend Policies
7) Trading terms
8) Length of production cycle
9) Profitability
10) Seasonal Variations.
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