Advertisement Remove all ads

Explain the Following as Factor Affecting the Requirements of Working Capital: Level of Competition - Business Studies

Explain the following as factor affecting the requirements of working capital:

Level of competition

Advertisement Remove all ads

Solution

Level of competition: The higher the extent of competition in the market, the larger is the amount of stock of goods that the firms must maintain to meet the demand; therefore, the higher is the requirement of working capital.

More competition ⇒ High working capital

Less competition ⇒ Low working capital

Concept: Factors Affecting Fixed and Working Capital Requirements
  Is there an error in this question or solution?
Advertisement Remove all ads
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×