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At which stage of the economic cycle is it most likely for a business to begin to reduce staff working hours? A - HSC - SSCE Business Studies - Question 9 - 2020 - Paper 1
Question 9
At which stage of the economic cycle is it most likely for a business to begin to reduce staff working hours? A. Boom B. Downswing C. Recession D. Upswing
Worked Solution & Example Answer:At which stage of the economic cycle is it most likely for a business to begin to reduce staff working hours? A - HSC - SSCE Business Studies - Question 9 - 2020 - Paper 1
Step 1
Identify the economic cycle stage for reducing staff hours
Answer
In the economic cycle, a business is most likely to reduce staff working hours during the 'Downswing' phase. This phase is characterized by a decline in economic activity, leading to reduced demand for goods and services. As companies seek to cut costs in response to decreasing revenue, they often implement measures such as reducing working hours, laying off staff, or freezing hiring. Therefore, the correct answer to this question is B. Downswing.