There are basically two important phases in a business cycle that are prosperity and depression. The other phases that are expansion, peak, trough and recovery are intermediary phases.
Expansion is a phase in which, when the economy moves from a trough to a peak. It is a period when the level of business activity surges and gross domestic product (GDP) expands until it reaches a peak.
All the above given statements are functions of Inventory.
Inventory or stock is the goods and materials that a business holds for the ultimate goal of resale. Inventory management is a discipline primarily about specifying the shape and placement of stocked goods.
The primary function of inventory is to use marketing and production to increase profitability, to get the maximum amount for the business' investment. There are other functions of inventory, such as balancing supply and demand, improving efficiency, establishing a safety stock and geographical specialization.
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