The Business Cycle Has Two Phases

question 38

Multiple Choice

The business cycle has two phases,

• A)expansion and trough.
• B)expansion and peak.
• C)peak and trough.
• D)recession and trough.
• E)recession and expansion.

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Definitions:

Lost Profits

Potential earnings or revenues that a business or individual did not realize due to an interruption, breach of contract, or other adverse events.

Breach of Contract

The violation of any of the agreed-upon terms and conditions of a binding contract without a legitimate legal excuse.

Consequential Damages

In a contract, foreseeable damages that result from special facts and circumstances arising outside the contract itself. The damages must be within the contemplation of the parties at the time the breach occurs. Also called special damages.

Nominal Damages

Monetary damages awarded to a plaintiff in a very small amount, typically $1 to $5, to signify that the plaintiff has been wronged by the defendant even though the plaintiff suffered no compensable harm.