3. InvestmentInvestment
Investment refers to an asset or itemInvestment refers to an asset or item
that is purchased with the hope thatthat is purchased with the hope that
it will generate income or appreciateit will generate income or appreciate
in the future.in the future.
Money committed or propertyMoney committed or property
acquired for future income.acquired for future income.
5. Types ofTypes of
InvestmentInvestment
Business Fixed Investment.Business Fixed Investment.
Residential investment.Residential investment.
Inventory Investment.Inventory Investment.
6. Business FixedBusiness Fixed
InvestmentInvestment
Business fixed investment isBusiness fixed investment is
expenditure by business onexpenditure by business on
structures, equipment andstructures, equipment and
software. Such investment issoftware. Such investment is
labeled ‘fixed’ to distinguish itlabeled ‘fixed’ to distinguish it
from investment in inventories.from investment in inventories.
8. InventoryInventory
InvestmentInvestment
Inventory investment is theInventory investment is the
expenses of buying raw-materials,expenses of buying raw-materials,
semi-finished goods to besemi-finished goods to be
processed into final goods.processed into final goods.