IGCSE, A Level Business Student Forum

KN:
An economic recession is when overall spending falls, leading to lower demand for many products and services.

AP:
For example, a house-building company like Bahria Town in Pakistan might face fewer buyers because people avoid taking home loans or investing in property during tough economic times.

AN:
This could make the company change its goal from growth to survival, as sales and profits fall sharply. It may focus on cutting costs and keeping enough cash to handle expenses. The company might also delay new housing projects to avoid financial losses until the economy improves.

[Kn] An economic recession leads to lower consumer income and spending.

[App] For example, a house-building company like D.R. Horton may find fewer people can afford to buy new homes.

[An] As a result, the company may change its objective from growth to survival to cope with falling demand, focus on cutting costs and maintaining cash flow and delay expansion plans until the economy recovers, helping it stay stable during tough conditions.

kn:an economic recession reduces consumer income and demand for new houses.
app:forexample during a recession fewer people can afford to buy homes so a house building company may experience lower sales and profits.
an:this could lead the business to change its objective from growth to survival focusing on reducing costs and maintaining enough cash flow to continue operating.

[KN] During an economic recession, people’s incomes and consumer confidence fall, reducing overall demand for new houses.
[APP] For example, a house-building company may experience fewer buyers as customers delay or cancel home purchases due to harsh conditions.
[AN] This means the business may have to shift its objectives from growth or expansion to survival and maintaining cash flow by cutting costs, delaying new projects, and focusing on keeping operations stable it might have to take loans to continue its activity further.