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In the Paint Industry, Various Raw Materials Are Mixed in Different Proportions with Petroleum for Manufacturing Different Kinds of Paints Identify the Factor Affecting the Working Capital Requirements of this Industry - CBSE (Commerce) Class 12 - Business Studies

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Question

In the paint industry, various raw materials are mixed in different proportions with petroleum for manufacturing different kinds of paints. One specific raw material is not readily and regularly available to the paint manufacturing companies. Bonler Paints Company is also facing this problem and because of this, there is a time lag between placing the order and the actual receipt of the material. But once it receives the raw materials, it takes less time in converting it into finished goods.

Identify the factor affecting the working capital requirements of this industry.

Solution

The factor affecting the working capital requirements of this industry is the availability of raw materials.

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Solution In the Paint Industry, Various Raw Materials Are Mixed in Different Proportions with Petroleum for Manufacturing Different Kinds of Paints Identify the Factor Affecting the Working Capital Requirements of this Industry Concept: Factors Affecting Fixed and Working Capital Requirements.
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