Q. Nature of the business?
The working capital requirement of the firm basic depends upon the nature of the business. public utility undertaking like the water supply and railway products very limited working capital because they cash sales only and supply the service not products and such no funds are tied in the inventory and in the receivable. on the other hands trading and financial firm require less investment in the fixed assets but have to invest in the current assets like inventory and cash as such they need the large amount of the working capital.