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Factors Determining Working Capital Requirement Working capital requirement is influenced by various factors. In fact, any and every activity of a company affects the working capital requirements of the company.
Factors determining working capital requirements. The quantum of working capital is depending upon a large number of factors. It is very difficult to pin point the factor which is highly responsible. The degree of influence of each factor varies from time to time.
Production policy of the organisation is also an important factor for determining working capital. In case of labour intensive industry the quantum of working capital is required only in smaller amount. Factors Determining Working Capital Requirement Table of Contents [hide] * 1 Factors Influencing Working Capital Management Nature of the Industry / Business Seasonality of Industry and Production Policy .
factors determining working capital requirement The working capital needs of a firm are determined and influenced by various factors. A wide variety of considerations may affect the quantum of working capital required . What are factors determining working capital requirements in business? Ans: The factors determining working capital needs of a business firm are as follows: 1. Size of the firm: A large firm needs more working capital than a small firm.