Question

Explain operating and cash cycle with graphical representation and also explain illustration

Answer 1

Explanation:

Business cycles are characterized by boom in one period and collapse in the subsequent period in the economic activities of a country.

These fluctuations in the economic activities are termed as phases of business cycles.

The fluctuations are compared with ebb and flow. The upward and downward fluctuations in the cumulative economic magnitudes of a country show variations in different economic activities in terms of production, investment, employment, credits, prices, and wages. Such changes represent different phases of business cycles