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Business Cycle

Business Cycle The working capital requirements are also determined by the nature of the Business fluctuations lead to cyclical and seasonal changes which, in turn, cause a working capital position, particularly for temporary working capital requirements in business...

Production Cycle

Production Cycle Another factor which has a bearing on the quantum of working capital is the production term production or manufacturing cycle refers to the time involved in the manufacture of goods. It covers the time span between the procurement of raw materials and...

General Nature of Business

General Nature of Business The working capital requirements of an enterprise are basically related to the conduct of business. Enterprises fall into some broad categories depending on the nature of their business. For instance public utilities have certain features...

DETERMINANTS OF WORKING CAPITAL

DETERMINANTS OF WORKING CAPITAL A firm should plan its operations in such a way that it should have neither too much nor too little working capital. The total working capital requirement is determined. by a wide variety of factors. These factors, however, affect...

Policy Changes

Policy Changes The second major cause of changes in the level of working capital is because of policy changes initiated by the management. There is a wide choice in the matter of current assets policy. The term current asset policy may be defined as the relationship...

Changes in Working Capital

Changes in Working Capital The changes in the level of working capital occur for the following three basic reasons: (i) changes in the level of sales and or operating expenses, (ii) policy changes, and (iii) changes in technology. Changes in Sales and Operating...