Conducted by BatStateU
, Started on 2016 -
Completed on 2017
Completed
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The purpose of the study was to obtain a close view on the effectiveness of cash management practices in Batangas City. The researchers used a self-constructed questionnaire as the main instrument, and interviews in gathering data. The respondents of the study are hardware businesses operating in Batangas City.Percentage, weighted mean, independent T-test and One-Way Analysis of Variance (ANOVA) were the statistical methods used. The variables used to assess the cash management practices of the respondents were transaction, precautionary, and speculative motive. The study aims to describe the cash management practices of the hardwraes. Specifically, it sought to address the following questions: what is the profile of the hardwares in Batangas City in terms of number of years in operation, number of employees, form of business, location of the business, and capitalization?; how effective is the cash management practices of hardwares in Batangas City based on transaction, precautionary, and speculative motives?; is there any significant differences on the cash management practices of hardwares when grouped according to profile variables?; and what strategies may be proposed to ensure sound cash management practices by the hardware business? Based on the result, majority of the hardware businesses in Batangas City is operating in 6-10 and 16-20 years, having 10-99 employees, engaged in sole proprietorship, located at rural areas with a capitalization of Php 3 000 000 and below. The researchers found that the least effective cash management practice in terms of transaction motive is investing cash in marketable securities; while in terms of precautionary motive, providing funds for some activity programs and crew trainings, representation expense, donations and charitable purposes, product promotions, and casualty losses. Meanwhile, in terms of speculative motive, saving for royalty fees and investing in stock trading is the least effective. On the other hand, in terms of transaction motive when grouped according to number of years in operation, there was significant difference on cash management practices of hardwares, in terms of precautionary motive when grouped according to form of business, there was significant difference on cash management practices of hardwares, while in terms of speculative motive when grouped according to number of years in operation and form of business there were significant differences on the cash management practices of hardwares. Proposed strategies were formulated to ensure sound cash management practices of the hardwares. As part of the contribution of the researchers in the industry, they proposed the plan of action or strategies in order to further enhance the operation of the businesses. The proposed strategies will serve as a guide and reference to the owners/managers in performing their transactions. In addition to this, it will also give information on how to further enrich the effectiveness of their transactions.