14 Factors Affecting Working Upper-Case Alphabetic Lineament Requirements

  14 Factors Affecting Working Upper-Case Alphabetic Lineament Requirements

14 Factors Affecting Working Upper-Case Alphabetic Lineament Requirements

Factors affecting working upper-case missive of the alphabet requirements


14 factors affecting working blogspot.com//search?q=what-is-capital-meaning-features-and">capital requirements of a blogspot.com//search?q=what-is-capital-meaning-features-and">business:

Image credits © Prof. Mudit Katyani.

  1. Nature of business,
  2. Size of business,
  3. Time as well as complexities of manufacturing process,
  4. Manufacturing cost,
  5. Growth as well as Expansion,
  6. Terms of purchase as well as sales,
  7. Conditions of supply,
  8. blogspot.com//search?q=what-is-capital-meaning-features-and">Market conditions,
  9. blogspot.com//search?q=what-is-capital-meaning-features-and">Business cycle,
  10. Operating cycle,
  11. Rate of Turnover,
  12. blogspot.com//search?q=what-is-capital-meaning-features-and">Cash requirements,
  13. Seasonal variations, and
  14. Other factors.

Now let's verbalize over factors determining working upper-case missive of the alphabet requirements.


1. Nature of Business


The total of working upper-case missive of the alphabet required depends on the sort or nature of trace concern a companionship performs:

  1. In illustration of populace utilities, less upper-case missive of the alphabet is required. It is so, since, they don't convey whatsoever stock inwards merchandise as well as they sell on a cash basis.
  2. Companies involved inwards trading as well as providing services require to a greater extent than working upper-case missive of the alphabet because they convey to hold a lot of stock-in-trade. They also convey to maintain a lot of liquid cash, bills receivable, thus on.
  3. Manufacturing companies ask to a greater extent than working upper-case missive of the alphabet to hold blogspot.com//search?q=what-is-capital-meaning-features-and">production if they piece of job imported as well as costly raw materials.
  4. blogspot.com//search?q=what-is-capital-meaning-features-and">Labour intensive industries also require to a greater extent than working upper-case missive of the alphabet because they convey to pass a lot of blogspot.com//search?q=what-is-capital-meaning-features-and">money on giving reward as well as salaries to workers or employees.
  5. Capital intensive industries ask less working upper-case missive of the alphabet because they convey to depends to a greater extent than on machines as well as less on the workers.

2. Size of Business


A size of trace concern determines the total of working upper-case missive of the alphabet that is needed.

For, e.g., bigger companies require to a greater extent than working upper-case missive of the alphabet than smaller ones.


3. Time as well as Complexities of Manufacturing Process


The fourth dimension as well as complexities involved inwards the manufacturing procedure impact the total of working upper-case missive of the alphabet that is required:

  1. If the manufacturing procedure is long as well as complicated, as well as thus to a greater extent than working upper-case missive of the alphabet is required. For example, companies manufacturing automobiles ask to a greater extent than working capital.
  2. If the manufacturing procedure is curt as well as simple, as well as thus less working upper-case missive of the alphabet is required. For example, companies involved inwards manufacturing soaps requires less working capital.

4. Manufacturing Cost


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The manufacturing cost is around other ingredient that determines, how much working upper-case missive of the alphabet is needed.

For example, if production cost of a production is high as well as thus working upper-case missive of the alphabet required is also to a greater extent than as well as vice versa.


5. Growth as well as Expansion


If a companionship is growing as well as expanding its trace concern activities, as well as thus it volition ask to a greater extent than working upper-case missive of the alphabet to maintain its growth.


6. Terms of Purchase as well as Sales


The working upper-case missive of the alphabet requirements of a companionship depends on its price of purchase as well as sales:

  1. If it makes a purchase on credit as well as sells on a cash basis, as well as thus it requires less working capital.
  2. Conversely, if it purchase alongside cash as well as sells on credit, as well as thus it volition ask to a greater extent than working capital.

7. Conditions of Supply


The working upper-case missive of the alphabet requirements of the companionship depends on the weather of supply:

  1. If the render of raw materials is regular, as well as thus the companionship tin hold less blogspot.com//search?q=what-is-capital-meaning-features-and">inventory (stock). So, it volition require less working capital.
  2. But, if the render is irregular as well as thus the companionship has to concur to a greater extent than stock. Therefore, inwards such a case, it volition ask to a greater extent than working capital.

8. Market Conditions


The working upper-case missive of the alphabet requirements of a companionship depends on the flat of contest inwards the market.

If the contest is intense, as well as thus the companionship has to pass a lot of coin on running blogspot.com//search?q=what-is-capital-meaning-features-and">advertising campaigns as well as sales promotion. It volition also convey to hold to a greater extent than stock as well as sell on credit. So, it volition require to a greater extent than working capital.


9. Business Cycle


The working upper-case missive of the alphabet requirements of a companionship depends on the trace concern cycle.

Business wheel consists of a nail as well as recession period:

  1. During the nail period, the sales are really high. So, inwards this time, the companionship has to pass a lot of coin on raw material, wages, etc. So, it requires to a greater extent than working capital.
  2. But, during the recession period, the sales turn down equally people tend to purchase less. Thus, inwards this phase, the companionship needs less working capital.

10. Operating Cycle


A service companionship commonly has a curt operating wheel or period. It also sells on a cash basis. So, it requires less working capital. For example, electricity as well as carry companies.

A manufacturing companionship commonly has a long operating cycle. It also sells on a credit basis. Therefore, it requires to a greater extent than working capital. For example, machine tools companies.


11. Rate of Turnover


The working upper-case missive of the alphabet requirements of a trace concern depends on the charge per unit of measurement of turnover or sales. If the sales are really fast, as well as thus less working upper-case missive of the alphabet is required as well as vice versa.


12. Cash Requirements


A companionship needs cash for paying salaries, rent, taxes, thus on. If the company's cash needs are high, as well as thus it requires to a greater extent than working capital. In other words, higher the cash requirement, greater volition locomote the working upper-case missive of the alphabet required as well as vice versa.


13. Seasonal Variations


The seasonal variations also influence the working capital:

  1. During the busy season, to a greater extent than working upper-case missive of the alphabet is required.
  2. During the slack (less busy) flavour less working upper-case missive of the alphabet is required.

14. Other Factors


Additional factors influencing working upper-case missive of the alphabet requirements:

  • Transport facilities,
  • Changes inwards cost level,
  • The credit standing of the company, etc.

Now read related article on this topic:

  1. blogspot.com//search?q=what-is-capital-meaning-features-and">Factors affecting fixed upper-case missive of the alphabet requirement.


5:53 PM  Finance

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