Which of the following types of businesses might have an operating cycle longer than one year?
A. Ski resort.
B. Clothing retailer.
C. Florist.
D. Wheat farmer.
E. Commercial airplane manufacturer.

Respuesta :

Answer: E. Commercial airplane manufacturer.

Explanation:

An operating cycle refers to the amount of time it will take a company to produce or purchase goods, sell them and receive cash for the goods.

A Commercial airplane manufacturer might have an operating cycle longer than a year as it takes time to manufacture planes and then to sell them due to their high prices and even at that with the huge amounts involved, the payments might not come all at once.