Full operating cycle influence on the food and beverages processing firms characteristics

https://doi.org/10.17221/72/2015-AGRICECONCitation:Michalski G. (2016): Full operating cycle influence on the food and beverages processing firms characteristics. Agric. Econ. – Czech, 62: 71-77.
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The aim of the study is to determine the rules governing the modern cash management in food and beverages processing enterprises with a full operating cycle with a particular emphasis on environmental conditions influencing enterprises. Having a full operating cycle is defined as a situation in which the small or medium enterprise has a stock of materials or raw materials, which it then as a result of the technological process converts into the finished products, offers them for sale through both cash sales and sales on the basis of the use of trade credit receivables. Used in this definition, full operating cycle consists of the conversion of inventories (including the time required to collect the materials and/or raw materials, processing them, and the time required storage of the finished products before transfer) and the full period of the collection of receivables. Research hypothesis is the belief that observed in many companies operating in industries using the full operating cycle, assessed by investigators as excessive cash reserves, are dependent on factors that give to describe the relationship between risk and uncertainty and the expected and realized under the conditions of risk and uncertainty in the value added generated by enterprises with a full operating cycle.
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