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Sorry for my poor english translation. ---- Business Administration As an investment in terms of economics is to purchase a long term useful means of production. Capital goods are included in the balance sheet in fixed assets and are therefore considered most valuable asset owned by the company. Investment assets are depreciated over the expected period of use (see depreciation). For example, a commercial vehicle to be purchased with a value of 30,000 €. If a use for this planned five-year, € 6000 may be deducted from the cost of depreciation in each year. Thus, the total costs fall in the profit and loss account (income statement) not already in the first year, but are evenly distributed (in this case linear in contrast to the progressive depreciation or accelerated depreciation) over the entire useful life. Investment and finance as one considered two different sides of the same coin, as any investment to be financed accordingly. The frequently used term "investment" in the business sense is wrong. Investment is not a cost, therefore no operating expenses, but the conversion of assets into fixed assets that the company is expected longer term available. --- Classification Basically investments are distinguished by the objects of investment. In addition to these can be rough subdivision even after start-up, net, gross and differentiate expansion projects: by subject: Property investments: Traditionally, buildings and land are often mentioned, currently also in art according to purpose: Founding investment: establishing accumulating investments by function: Research investment: by interdependence: substitutive investment: Direct investment refers to investment in business ventures abroad. Direct investments are a form of capital export. ---- Decision problem Investments are regarded as sensitive key decisions in business operations, since they often have a long-term strategic importance. These result from the capital intensity, long-term capital commitment and consequently the reversibility of heavy investment. Another problem is the time it takes for an investment is realized (time lag), and the level of information (mostly about the future), which leads to uncertainties. In order to make statements about the investment situation of a company, there are some financial ratios. These include investment intensity Inventory ratio and investment rate. The investment decision is further complicated by the fact that in addition to purely economic criteria (such as life, capital and profitability), which are summarized in the capital account and treated as a decision recommendation, often other aspects (legal, technical feasibility, interdependencies with other areas) a role play. A new approach to determining the profitability of an investment are the real options, which means an investment with the option pricing theory can be determined. Money capital or financial capital of a company called untied funds as bank deposits, bonds or cash. Other forms of capital to physical capital (physical capital) and human capital. Money capital can be seen from the individual owner's money capital used at any time, for example, for investment and are thus converted into physical capital. -> Created for Barry, Lizanne Rosenstein |
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