The Christmas tree farm has the longest operating cycle which cover almost more than one year.
The operating cycle is the typical amount of time required for a firm to buy its initial capital to buy raw materials, produce products, sell those products, and then get payment from the customer for those products. This really is helpful for determining how much working capital a business will require to maintain up with or grow its operations.
As a consequence of having a very short operating cycle, a company can continue to expand while retaining very low profits. Conversely, if a company's operating cycle is unusually long, it may have healthy margins yet just need additional funding to grow even slowly.
The complete question is here:
Which of the following businesses would most likely have the longest operating cycle?
A. A chain of coffee shops.
B. A national sporting goods chain.
C. An antiques dealer.
D. A Christmas tree farm.
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