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These four stages of a business cycle are experienced by every business, big or small, though not necessarily in the same order. In the business cycle there will be four phase : Peak, Expansion, Contraction and trough. Economic cycles are identified as having four distinct economic stages: expansion, peak, contraction, and trough. Asides knowing how the four phases of the business cycle work, there is no generally accepted agreement as to how long a business cycle lasts. Initially, a 7-year economic cycle was first identified by French economist, Clement Jaguar, in 1860, although he said that it can last as long as 11 years. Every business goes through 4 stages of business growth: startup, growth, maturity and renewal/decline. Key Stages of the Business Cycle. The business cycle help to track the growth and loss of the business by analyzing the economy. Discover how to identify which stage of the life cycle your small business is in, what unique challenges you’ll need to overcome and how to continue to evolve. It help to take the financial decisions. Often, the final stages of a business are not the responsibility of the business … The four primary phases of the business cycle include: Expansion: A speedup in the pace of economic activity defined by high growth, low unemployment, and increasing prices. Let’s look at the first approach to business growth. This period is termed as Prosperity phase. When there is an expansion of output, income, employment, prices and profits, there is also a rise in the standard of living. Each is critical to your ongoing success, and each brings unique opportunities and challenges that require you to make critical decisions. The growth perspective focuses on the stages that take a newly founded brand from the startup phase to a large enterprise where the business becomes a household name. Explanation of Four Phases of Business Cycle. Peak: The upper turning point of a business cycle and the point at which expansion turns into contraction. It describes government measures to increase production and bring about a depression. Yours will undergo a continual evolution, transforming from an idea to a full-fledged company.In the process, your startup will go through various life-cycle stages. Reading Time: 4 minutes (Last Updated On: February 17, 2019) Every growing entity, be it human, animal, plant or a business, needs to be nurtured and nourished according to age and stage. Sometimes the business flourishes and gains maximum profits, while at times the business is on the verge of a complete meltdown. It describes government measures to stimulate demand and bring about a recovery. The business cycle goes through four different phases and that are expansion, contraction, peak, and trough. A peak is the highest point of the business cycle, when the economy is producing at maximum allowable Prosperity Phase. No business stays the same forever. In this case, the four stages of business growth are the following: Stage #1: Startup The four phases of a business cycle are briefly explained as follows :-1. The standard four stages of business life cycle include a Renewal or Decline Phase, in which the company can branch out into gradual decline or renew itself to adapt with the changing times. The federal is used to manger the cycle of the monetary policy. February 4, 2009 Which statement best explains this passage? An expansion is characterized by increasing employment, economic growth, and upward pressure on prices. The period marked from trough to peak. It describes a shift in government policies during a trough on the business cycle. 4 Company Growth Stages. It describes government measures to stimulate demand and bring about a depression cycle of business. 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