Dis - 1 Why has the consideration of business cycles in determining a firm's value become of declining importance over the past few decades

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1. Why has the consideration of business cycles in determining a firm's value, become of declining importance over the past few decades? Business cycle is the different stages of a business. There are four stages of a business i.e. recession, recovery, growth, and decline. We should know that every business cycle is associated with some of business trends such as Country, economic condition, monetary policy, industry, market potential, technology innovation, etc. From last few decades these trends have started affecting the firm at a big extent and due to that a business cycle showed a declining importance while determining the firm’s value from last few decades. These factors are playing a very important role in the business cycle of the firm as well as the value of the firm, so with the help of these factors we can determine the firm’s value. 2. how does increasing competition impact business fluctuations, and how does it impact a firm's price power? Competition and competitors are one of the very important aspects for any business.
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This note was uploaded on 02/21/2012 for the course ACT 492 taught by Professor Ngo during the Fall '11 term at Colorado.

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