What factors affect working capital requirement?

What factors affect working capital requirement?


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.
Define a.) Fixed working capital b.) Variable working capital
a.) Fixed working capital is that portion of the total capital that is required to be maintained in the business…
What are the sources used for financing temporary requirement of working capital?
The sources used for financing temporary requirement of working capital are:…
Explain spontaneous source of financing variable working capital.
Spontaneous source of financing variable working arises in the normal course of business operations…
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