Tatiana y sus trabajos
Monica Tatiana Ruiz Tovar
And
Juan David Salazar
Lauretta Bender bilingual school
Santiago de Cali
2009-2010
Workshop of Business ManagementMonica Tatiana Ruiz Tovar
And
Juan David Salazar
Alfonso Perret
Business Management
8-
Lauretta Bender bilingual school
2009-2010
What is an Investment?
Investment orinvesting is a term with several closely-related meanings in business management, finance and economics, related to saving or deferring consumption. Investing is the active redirection of resources: frombeing consumed today, to creating benefits in the future; the use of assets to earn income or profit. An investment is a choice by an individual or an organization such as a pension fund, after at leastsome careful analysis or thought, to place or lend money in a vehicle (e.g. property, stock securities, bonds) that has sufficiently low risk and provides the possibility of generating returns over aperiod of time. Placing or lending money in a vehicle that risks the loss of the principal sum or that has not been thoroughly analyzed is, by definition speculation, not investment.
In the case ofinvestment, rather than store the good produced or its money equivalent, the investor chooses to use that good either to create a durable consumer or producer good, or to lend the original saved goodto another in exchange for either interest or a share of the profits. In the first case, the individual creates durable consumer goods, hoping the services from the good will make his life better. Inthe second, the individual becomes an entrepreneur using the resource to produce goods and services for others in the hope of a profitable sale. The third case describes a lender, and the fourthdescribes an investor in a share of the business. In each case, the consumer obtains a durable asset or investment, and accounts for that asset by recording an equivalent liability. As time passes, and...
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