Business & Finance homework assistance| Business & Finance homework help
Consequently, companies are likely to take steps towards conserving cash by cutting costs & minimizing investments in order to remain viable during these uncertain times. This is usually seen through layoffs or hiring freezes as well as curtailed spending on research & development activities etc.
Furthermore, banks tend to tighten their lending standards during recessions which can result in decreased availability of capital for companies who wish to finance expansion plans – thus further exacerbating negative impacts from an already weakened economy.
In conclusion, downturns are typically characterized by negative economic indicators such as slow growth & high unemployment rates; making it a difficult period for most businesses who must take proactive steps towards mitigating risk & ensuring their sustainability going forward.