as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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describe the effects of a four year economic recession on a small business.
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a four year economic recession can have devastating effects on a small business. cash flow problems can arise if orders drop off, inventory costs can increase, and costumers may become more risk-adverse causing their spending habits to change. as result, a small business may experience a decrease in their customer base, which can lead to a decrease in revenue. it can become difficult to pay staff and meet loan payments in a recession and layoffs may be necessary. if a small business has not adequately prepared for a recession, it may struggle to stay afloat during this difficult economic period.
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