Types of midlemen comes under stock exchange board of india
Answers
i) Identification of threats and early warning signal: awareness of business environment help enterprise to identify opportunities prevailing in market and also threats and making strategies to tap the same. For example; Maruti Udyog has became leader in small car market.
ii) Improving performance: the enterprises which continuously monitor business environment adopt suitable practices for improving performance.
The factors affecting working capital requirement are:
1) Nature of business: A manufacturing concern needs more working capital while trading company require comparatively less working capital.
2) Scale of operations: A large scale business require large working capital while a low scale business concern require less working capital requirement.
3) Credit allowed; Those enterprises which sell goods on cash payment basis need little working capital but those who provide credit facilities to the customers need more working capital.
4) Growth prospects: The organisations which have sufficient possibilities of growth require more working capital, while the case is different in respect of companies with less growth prospects.