the business cycle/ business decisions and stakeholders

Question 1

boom

Answer 1

strong increase in economic activity

Question 2

slow turn/ downturn

Answer 2

economic activity begins to slow down

Question 3

recession

Answer 3

when economic growth is negative

Question 4

recovery/upturn

Answer 4

economic activity begins to rise

Question 5

economic activity

Answer 5

refers to the amount of buying and selling that takes place between businesses and consumers in a period of time.

Question 6

how can the government may take action in a boom

Answer 6

increase interest prices

Question 7

what can the government do in a downturn

Answer 7

decrease interest prices to encourage spending

Question 8

in a boom

Answer 8

> consumer and business confidence is high
consumers borrow and spend more
businesses take on more employees
businesses invest and expand

Question 9

in a downturn

Answer 9

> consumer and business confidence is low
consumers borrow and spend less,preferring to save.
sales fall. prices may have to be cut
businesses may make employees redundant
have to cut back on spending
more likely to experience cash flow problems

Question 10

what do managers want

Answer 10

bonuses and long term sucess

Question 11

what do owners want

Answer 11

want profits and a return on their investment

Question 12

what do workers want

Answer 12

good pay and working conditions

Question 13

what do customers want

Answer 13

want value for money

Question 14

what do competitors want

Answer 14

sometimes want coorperation and support

Question 15

what does the local community want

Answer 15

wants local investment and limited pollution