Key factor

Key factor or Limiting factor is a factor which at a particular time or over a
period limits the activities of an undertaking. It may be the level of demand for the
products or services or it may be the shortage of one or more of the productive resources,
e.g., labour hours, available plant capacity, raw material’s availability etc. Examples of
Key Factors or Limiting Factors are:
(a) Shortage of raw material.
(b) Shortage of labour.
(c) Plant capacity available.
(d) Sales capacity available.
(e) Cash availability.