Any Business Entity has to go through 4 business phases or business cycles. Phase 1: When the company starts, it prepares the foundation. All important data remains in a very consolidated phase and within a defined price range. Phase 2: Company improves in all aspects of frame and price range breaks the defined range and moves quickly to reach a peak. Phase 3: Now, company is again range bound and this phase gives an ooportunity how it can improve its overall financials and move to another peak. Phase 4: After phase 3, if the company fails due to internal or external factors to reach a new peak, it declines sharply.
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