financial distress phase of the Business cycle involves more money in the form of credit is made available by the financial system some trigger/catalyst initiates, a massive sellout and a fallen prices. External shock act new technology triggers, profit opportunities in some economic sectors significant selling by insiders fraud is being revealed more investors become overconfident and over optimistic.
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Step 1: Identify the financial distress phase of the business cycle, which is characterized by a significant downturn in economic activity, leading to increased financial instability and reduced consumer and business confidence. Show more…
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