How does ‘level of competition’ affect the working capital requirement of an organisation? State.

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asked Feb 1, 2018 in Business Studies by Rohit Singh (61,782 points) 35 133 354
How does ‘level of competition’ affect the working capital requirement of an organisation? State.

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answered Feb 1, 2018 by sameer (82,980 points) 5 11 37

Level of competition affects the working capital requirement of an organisation as higher competition requires larger stocks to meet urgent orders from customers which results into requirement of more working capital.

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