If you are a businessperson, you certainly know that there is nothing more important than investing and the investment itself. If you think about it, you will realize the truth- all profits which a businessperson makes are because he or she had made an investment. And there is even an expression “to return on your investment” which means that the investment was beneficial and the businessperson has made profit. But of course investments are not always good and sometimes they can be reason for loss and when the investment is huge (or still called “serious”) then it even might be responsible for the close-down of a company.
But you probably know that there are many kinds of investments and each of them is used for different purposes and in different cases! However, the most common investment which is made is the so called finance investment. What businesspeople do is spending money on something such as materials, products, machines and so on and there are expectations that those things will make money for the investor and this way the investment will be returned, as it is said in the business language.
Actually, some financiers claim that bank deposits could also be considered as a business finance investment. And we must admit that what they say is pretty logical. When we put a certain amount of money in a bank, the sum starts growing because of the interest of deposits. Although, the rates of growth are really low, they do exist and our money (finance) becomes more. Therefore, we make profit which means that there was an investment. Did you see how easy it was to make the connection and it is obvious when there is an investment and when not.
When we said that the finance investments are an extremely significant part of the business, you may not have realized how serious they actually are. And that is why I am going to prove it to you by one single example. Don’t you know that there is a whole branch of the finance subject which is based entirely on the investment issues? There are hundreds of formulas and logarithms which are used by finance managers and business people in order to decrease the risk of the so called bad investments!
Basically, that was everything which you had to know about business finance investments. You need to figure it out that everything which brings money back or help you make profits, is an investment and even more- it is a good investment!