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AnnZ [28]
3 years ago
11

What are the four factors that affect the business cycle and how does each factor

History
1 answer:
Nezavi [6.7K]3 years ago
5 0

<u>Answer:</u>

The four factors that affect the business cycle

  • Finances
  • Marketing
  • Competition
  • Time

There are 4 stages of product's life.

  • Introduction
  • Growth
  • Maturity
  • Decline .

<u>Explanation:</u>

The factors that affects the business cycle are-  

<u>Finances</u>

There is a slow growth or sales during the initial stage of the business cycle because of the low financial input and also the consumer market is unaware about the product and need time to learn and consider about buying it or not.

<u>Marketing</u>

In terms of Marketing, the company should inform their customers about their new product. They secure distribution points such as stores and websites and after an increase in the growth, they should start funding on the advertisements.

<u>Competition</u>

Some businesses create unique products and have no such market competition but some enters in an already existing market and tries to make their product different form other similar products.

<u>Time </u>

Time also affects the business cycle. It has a direct effect. Customers buy products depending upon their needs which mostly revolve around the timing and the season they tend to buy the products and the graph of a product's growth is like a curve during this cycle.

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