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1.

Business Cycle are a type of fluctuation found in the aggregate economic activity of
nations a cycle consists of expansions occurring at about the same time in many
economic activities, followed by similarly general recessions this sequence of changes is
recurrent but not periodic. In essence, business cycles are marked by the alternation of the
phases of expansion and contraction in aggregate economic activity, and the comovement
among economic variables in each phase of the cycle. A recession is actually a specific
sort of vicious cycle, with cascading declines in output, employment, income, and sales
that feed back into a further drop in output, spreading rapidly from industry to industry
and region to region. This domino effect is key to the diffusion of recessionary weakness
across the economy, driving the comovement among these coincident economic
indicators and the persistence of the recession.

So, Business cycle is the periodic rises and falls which occurs in economy over time.
The benefits for someone who knows the business cycle of his business are : He knows
how to make a managerial decisions related to growth or down - sizing within his
business, He can put his current business in a better perspective, He can increase his
profit and overcome the recessions

2. Benefits can a business have when he knows the business cycle of his business

business cycle analysis is useful for a relatively accurate early detection process
regarding the turning point of macroeconomic conditions, enabling policy makers to
formulate preemptive policy steps. It is recognized that business cycle analysis can
produce relatively precise indicators for making turning point predictions that also
include detecting changes in economic regimes.

The first is interest rate. If the interest rate is low, the new investment will come and it
will add the jobs. If the interest rate is climbed, the investment dries up and less job
growth.

The second is consumer expectation. Forecast of expanding economy  fuels more


spending, while fear of recession decreases consumer spending.

3. Month of the year is the best to open a business

My opinion Ultimately, there is no true “best” time of the year to start a business, but
there is also no “worst” time of the year to be an entrepreneur. There are certainly
benefits to starting a business during a particular season depending on your specific
business, but the best thing you can do is prepare yourself.

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