Question

Write the Factor affecting requirement of working capital:

Answer 1

Availability of raw material	Higher lead time to acquire raw material, so higher stock of raw material would be needed.	Lower lead time, so less stock of raw material would be needed.
Growth prospects	High growth prospects	Low growth prospects.
Level of competition	High competition would require high amount of stock keeping	Low competition would require less amount of stock keeping.
Productive cycle	Long production cycle.	Short production cycle