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Why not to worry

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11-02-2006, 12:58 PM
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Why not to worry

Once a business is established, success is not guaranteed. Companies constantly have to compete for consumer spending by offering products they want. Even so, every business experiences periods of high earnings, followed by dry spells. It is important for companies to manage their resources throughout their lifetimes in order to avoid going into debt or losing everything through bankruptcy.

There are four phases in a business cycle:

PROSPERITY : rapid growth period: high production period
the company is producing many goods to meet demand

consumers are spending money with confidence

the company is able to hire more workers at higher wages

profits are increasing

RECESSION : growth is slowing down: consumption slows down

production rates drop off

consumers are not buying as much as they had been

there is greater unemployment than previously seen

profits are decreasing

DEPRESSION : production and consumption slows or stops

consumption falls behind production; too much inventory on hand

consumers are saving money, not spending it

workers are laid off to recuperate lost profit

the company may experience debt

RECOVERY : renewed period of production and consumption

the company is starting to produce again, maybe with new products

consumers confidence is restored; people are spending

there are more job opportunities; companies are hiring again

profits are beginning to improve again

Right Now I think we are at the depression stage, Traid ideas are floating around, but I am predicting a recovery in the next 5-10 games

Off my grade 9 homework

matt1219 is offline   Reply With Quote
11-02-2006, 05:02 PM
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I needed a good laugh.

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