Exhibit 1. Internal and External Factors That Affect Working Capital Needs
Internal Factors
External Factors
Company size and growth rates
Organizational structure
Sophistication of working capital management
Borrowing and investing positions/activities/capacities
Banking services
Interest rates
New technologies and new products
The economy
Competitors
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Reading 38 Working Capital Management Intro ement also requires reliable cash forecasts, as well as current and accurate information on transactions and bank balances.
Both internal and external factors influence working capital needs; we summarize them in Exhibit 1.
<span>Exhibit 1. Internal and External Factors That Affect Working Capital Needs
Internal Factors External Factors
Company size and growth rates
Organizational structure
Sophistication of working capital management
Borrowing and investing positions/activities/capacities
Banking services
Interest rates
New technologies and new products
The economy
Competitors
The scope of working capital management includes transactions, relations, analyses, and focus:
Transactions include payments for
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