Factors Influencing Working Capital Management
- Topics:
- Working Capital
- Source:
- CiteMan Network
FREE Registration is required
Overview: The working capital needs of a firm are influenced by numerous factors. The important ones are: nature of business; seasonality of operations; production conditions; market conditions; conditions of supply. The working capital requirement of a firm is closely related to the nature of its business. A service firm, like an electricity undertaking or a transport corporation, which has a short operating cycle and which sells predominantly on cash basis, has a modest working capital requirement. On the other hand, a manufacturing concern like a machine tools unit, which has a long operating cycle and which sells largely on credit, has a very substantial working capital requirement.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: HTML | Date: Jul 2008 | Pages: 5




