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Working capital requirements depends on the credit policy of _________

  • Working capital requirements depends on the credit policy of company and Suppliers.
  • Credit Policy is one of the important and influencing factors in determination of working capital.
  • A liberal credit to intermediaries needs higher amount of working capital.
  • A company, which enjoys a liberal credit from its suppliers, require lower amount of working capital.
  • A company follows strict credit norms will show impact on lower amount of working capital.
  • A strict credit policy followed by suppliers require higher amount of working capital.