1. Briefly describe the various stages of the business cycle - boom, recession and recovery.

2. What happens to the level of economic activity in a recession? How has Davis minimised the negative impact of the recession in 2008 and 2009?

3. Using examples from Davis, analyse the approaches a company can take to prepare itself for a period of recovery.

4. Illustrating your answer using a specific company, evaluate the best ways in which a business can reduce the impacts of the trade cycle on its performance.