Question

discuss any four determinants of working capital requirement of a firm.

Answer 1

1) Nature of business

2) length of operations cycle

3) credit allowed

4) credit avail

Answer 2

As identified by most of the empirical studies, we have reviewed the following as the determinants of working capital management requirements: firm size, sales growth, profitability, leverage, level of economic activities, operating cycle and the nature of the business.