Masters in Business Administration-MUC

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https://hdl.handle.net/20.500.11951/1152

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Browsing Masters in Business Administration-MUC by Author "Christine Kiige Nankya"

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    Cash Management Practices and Financial Performance of Agri-business Enterprises in Mbale City
    (Uganda Christian University, 2024-08-09) Christine Kiige Nankya
    This research was set to examine the effect of cash management practices on the financial performance of agribusiness enterprises in Mbale City. The objectives of the study were; to determine the effect of cash budgeting on financial performance of agribusiness enterprises, to establish the influence of cash control on financial performance of agribusiness enterprises and to determine the effect of book keeping on financial performance of agribusiness enterprises in Mbale City. A cross-sectional study design, using a sample of 152 agribusiness enterprises in Mbale City was adopted. Purposive sampling and simple random sampling techniques were utilized to choose the respondents and information was gathered with a well-designed structured questionnaires and interview guide. The study findings revealed that cash control was the strongest predictor of financial performance of agribusiness enterprises (beta=0.349 and p=0.000), followed by cash budgeting (beta=0.318 and p=0.000) and then book keeping (beta = 0.299 and p=0.000). It can therefore be concluded that cash budgeting, cash control and book keeping have strong influence on the financial performance of agribusiness enterprises. The study recommends that agribusiness enterprises should focus more on cash budgeting by preparing adequate budgets so as to ensure effective allocation and utilizations of the available resources in an effort to improve financial performance. The research also recommends that agribusiness enterprises should put in place proper cash control measures such as separation of obligations, good authorization, sufficient records and documents, physical controls, and sovereign checks on performance over cash payments, cash received, and cash banked so as to avoid likely loopholes that may affect financial performance. In addition, agribusiness enterprises should ensure proper bookkeeping by adequately recording all the business transactions in the ledger books or an accounting and bookkeeping software. This will help to determine if the business is making profits or losses.