In a market, a buyer and a seller are the two primary entities who interact with each other to make a transaction.
The buyer tries to buy a commodity at the lowest possible price, while the seller tries to sell it at the highest possible price. A similar situation exists when a seller sells a house to a buyer. However, both of them do not possess an equal level of information about the house’s quality. This is the reason why the seller has to accept a lower price for the house than he feels reflects the house’s true value.This situation is referred to as a market failure since both the seller and buyer don't have equal knowledge. This creates information asymmetry and is referred to as a market failure. The buyer who is unaware of the house's true value may negotiate the price lower than the seller thinks it is worth. The seller may not have any other option and may have to sell the house at a lower price than they think it is worth. As a result, the seller may have to accept a lower price than what they thought was the true value of their house. The lack of information can lead to an inefficient market.
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Taryn is 16 years old in a state where the age of majority is 19. Taryn plans to begin working at a restaurant next week. Her parents are willing to let her use one of their cars, but she wants her own car. If Taryn buys a car for fair market value, would she be able to return the car and get a full refund
Since Taryn is a minor does have special contractual rights when he purchases necessaries. In this case Taryn does not really need the car since his parents have offered the use of car.
The car dealer could not legally refuse to take the car back and must return Taryn's money.
Fair market value:The fair market value of a piece of property is the price at which it would change hands between a willing and informed buyer and seller. The term can be found throughout the Internal Revenue Code, as well as in numerous state laws, bankruptcy laws, and regulatory bodies. In real estate, a property's determined fair market value (FMV) is the price it will sell for on the open market. A willing buyer and seller who are both reasonably knowledgeable about the property in question agree on the FMV.
How significant is fair market value?Parties can agree on a fair market value provided certain conditions are met. It usually takes place in legal settings and implies free and open market activity. Insurance companies and tax authorities use it extensively.
Question is incomplete . Missing part is:
Taryn is 16 years old in a state where the age of majority is 19. Taryn plans to begin working at a restaurant next week. Her parents are willing to let her use one of their cars, but she wants her own car. If Taryn buys a car for fair market value, would she be able to return the car and get a full refund. Explain the answer.
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What is the difference between a routine and a major decision
Answer: routine decision- the type made every day without much though
planned decision- use more time and energy to make the best choice
Explanation: i really hoped it helped.
During a home visit to an 88-year-old client who is taking digoxin (Lanoxin) 0.25 mg daily to help control the rate or atrial fibrillation, you obtain this assessment information. Which finding is most important to communicate to the healthcare provider
The most important finding to communicate to the healthcare provider during a home visit to an 88-year-old client taking digoxin (Lanoxin) 0.25 mg daily for atrial fibrillation control would be any signs of digoxin toxicity or adverse reactions.
Digoxin toxicity can occur if the client is receiving too high a dose or if their body is not metabolizing the medication properly. Symptoms of digoxin toxicity include nausea, vomiting, dizziness, confusion, visual disturbances, and an irregular heartbeat. Additionally, monitoring the client's vital signs, such as heart rate and blood pressure, as well as their overall well-being, is crucial.
Communication between the healthcare provider and the caregiver ensures proper dosage adjustments, preventing potential complications. Timely reporting of any unusual findings or symptoms to the healthcare provider is essential for the safe and effective management of the client's atrial fibrillation.
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you bought 1 share of stock for 44.01 three months ago just received a divdend of 2.90 per share and can sell the stock for 49.37 per share today. what was the stock dividend yield over, the past 3 months/from 3 months ago today. round the value to 100th decimal
The stock dividend yield over the past three months, from three months ago to today, is approximately 6.58%.
To calculate the stock dividend yield over the past three months, we need to consider the dividend received and the change in stock price during that period. The dividend yield is a measure of the return on an investment in the form of dividends relative to the stock's price. In this case, you bought one share of stock for $44.01 three months ago and received a dividend of $2.90 per share. The current selling price of the stock is $49.37 per share.
To calculate the stock dividend yield, we divide the dividend received by the initial stock price and then multiply by 100 to express the yield as a percentage.
The formula for dividend yield is:
Dividend Yield = (Dividend / Stock Price) * 100
Plugging in the given values, we have:
Dividend Yield = (2.90 / 44.01) * 100 ≈ 6.58%
Therefore, the stock dividend yield over the past three months, from three months ago to today, is approximately 6.58%. This indicates the return in the form of dividends relative to the initial stock price during that period.
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which form determines how much state income tax is withheld from your paycheck?
By completing Form W-4: An Employee's Withholding Allowance Certificate, you can let your employer know how much money should be taken out of your paycheck to cover federal paycheck taxes.
The federal government determines the paycheck taxes percentages that workers must pay. Payroll taxes or FICA (Federal Insurance Contributions Act) taxes are subtracted from your paycheck and include Social Security and Medicare taxes. Social Security taxes provide retirement and disability benefits for workers and their families. The Medicare tax, which also includes medical benefits, applies to all adults 65 years of age and over, as well as to some disabled people who are younger. It also applies to people with chronic renal failure who require dialysis or a transplant. Employers contribute to these payroll taxes in part.
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17. Identify TWO aspect that may be an indication that you do not have time
management skills.
Bad time management causes low productivity since tasks aren't planned out or given priority. It may cause individuals to miss out on time from routine duties and finally result in burnout. Setting attainable goals is one of several strategies for enhancing time management abilities.
What contributes to students' bad time management?Some of the most common effects of poor time management among college students include lack of sleep, decreased academic performance, continuous procrastination, poor nutrition, and a higher risk of dropping out. Students frequently miss class, rush through tasks, and submit subpar work as a result.
How much does poor time management cost?You can end up working longer and longer hours to do your task as a result of poor time management, which will leave you exhausted, stressed, burnt out, and unwell with less time for your personal life.
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you were visiting your grandpa and you happened to find $5000 stashed in an old shoe box. he told you that he had been saving this money for over 20 years. a. explain to him other options he has.
b. explain and demonstrate the principles of compounding interest.
Answer:
(only a) the best option would be investing in stocks
Explanation:
Ivie Clarke has decided to launch a numbers game like Sudoku. She estimates her fixed costs to be £5,000. The variable costs are £1.20 per game. She intends to sell the games for £5.00 each. Ivie estimates she will sell 1,400 games a month. 7 (a) What is her total revenue if she sells 1,400 games? (1) (b) What are her total costs if she sells 1,400 games?(1) (c) How much profit does she make if she sells 1,400 games?(1) 8 How many games does she need to sell to cover her total costs?(1) 9 In fact the fixed costs of the business were actually £5,500. How much profit or loss would Ivie make if she sold 1,400 games. (2)
Her total revenue if she sells the 1,400 games of the numbers game is £7,000.
What is revenue?The average sales price is multiplied by the quantity of units sold to arrive at revenue, which represents the money generated by normal business operations. Net income must be deducted from the top line (or gross sales) figure in order to be calculated. In the salary summary, revenue and sales are synonymous. To determine how effectively a business collects unpaid debt, it is critical to review the cash flow summary. Cash accounting, in comparison, only records purchases as revenue when actual money changes hands. "Receipt" is the term used to describe money provided to a business. For receipts to show, income is not necessary. For instance, there will be a receipt but no income from a customer who pre-paid for a service or goods that were never delivered.
Ivie's total revenue if she sells the 1,400 games is:
Revenue = Price per game x Number of games sold
Revenue = £5.00 x 1,400
Revenue = £7,000
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An investor thought that market interest rates were going to decline. He paid $19,000 fora corporate bond with a face value of $20,000. The bond has an interest rate of 10% per year payable annually. If the investor plans to sell the bond immediately after receiving the 4th interest payment, how much will he have to receive (sell it for) in order to make a return of 14% per year?
Answer:
$22,251
Explanation:
Coupon rate = $2,000
Now, we calculate the seired sale price of the bonds:
19,000 = 2,000[P/A, 14%, 4] + S[P/F. 14%, 4]
19,000 = 2,000(2.9137) + S(0.592)
S = (19,000 - 5,827.4) / 0.592
S = 22251.01351351351
S = $22,251
So, he have to receive $22,251.
Which department does not have any impact on inventory? a. finance b. manufacturing c. corporate governance d. marketing
Corporate Governance is the department that does not have any impact on inventory. Option C is correct.
The set of policies, procedures, and guidelines by which a business is managed and controlled is known as corporate governance. The term "Corporate Governance" describes how and why businesses are run. It reveals who is in charge, accountable, and makes decisions.
A company's operations and alignment with the interests of all its stakeholders are determined by a system of rules and practices that are established through corporate governance. Financial viability is facilitated by ethical business practices and good corporate governance. Thus, that can draw in financial backers.
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what are the pros and cons of being a program director
Answer:
Con- it takes a looong time
What is a Legal tender plsss
Answer:
Legal tender is something which is acknowledged by the laws as a mechanism to settle a private or public debt or in order to meet a fiscal responsibility which includes paying taxes, abiding by contracts, and finally damages or fines. Almost every country uses its national currency as legal tender.
Creditors are lawfully responsible for accepting legal tender for the repayment of debt that they have availed.
Write a critical discussion on "criteria for risk assessment and
management" and give an example of a risk matrix for significance
rating.
Criteria for risk assessment and management play a vital role in identifying, evaluating, and addressing potential risks within an organization. These criteria provide a structured framework for assessing risks based on their likelihood and potential impact.
By employing effective risk assessment methods, organizations can prioritize their resources and develop appropriate risk mitigation strategies.
One commonly used tool in risk assessment is a risk matrix, which assigns significance ratings to risks based on their likelihood and impact levels.
This matrix helps in visualizing and categorizing risks, allowing organizations to focus on addressing high-risk areas and making informed decisions.
Criteria for risk assessment and management provide guidelines for systematically evaluating and managing risks within an organization.
These criteria typically include factors such as the likelihood of occurrence, potential impact, severity, vulnerability, and control measures.
By considering these criteria, organizations can assess and prioritize risks, enabling them to allocate resources effectively and develop appropriate risk mitigation strategies.
One common tool used in risk assessment is a risk matrix, also known as a probability-impact matrix or risk severity matrix. A risk matrix helps in determining the significance rating of different risks based on their likelihood of occurrence and potential impact.
It typically consists of a grid with likelihood levels on one axis and impact levels on the other axis. Likelihood is often rated as low, medium, or high, while impact is rated as minor, moderate, or severe.
For example, a risk matrix may categorize risks as low significance if they have a low likelihood of occurrence and a minor impact. Risks with a high likelihood of occurrence and severe impact would be rated as high significance.
The matrix allows organizations to visually represent and prioritize risks based on their significance ratings. This aids in decision-making by identifying high-risk areas that require immediate attention and resources.
In conclusion, the criteria for risk assessment and management provide a structured approach to evaluate and address risks within an organization.
By employing these criteria and utilizing tools like a risk matrix, organizations can identify, categorize, and prioritize risks based on their likelihood and potential impact.
This enables them to allocate resources effectively and implement appropriate risk mitigation strategies, reducing the likelihood of negative consequences and improving overall risk management practices.
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What can affect whether banks or other financial insututions are
interested in offering an individual a loan?
A. Financial knowledge
B. Personal credit
C. Financial experience
D. Business credit
Answer:
B. Personal credit if it is a personal loan
D. If the individual applies to start a business
Explanation:
Typically Financial institutions extend loans based on "credit worthiness" (or credit score) of the individual and can be extended based on whether the individual has an asset to secure the loan. Lack of an asset can have a negative result (dependent upon the amount requested) if the loan request is for a large amount of money.
The cost of economic espionage to firms in the United States is estimated to be
Multiple Choice
a $10 billion per year.
b $600 billion per year.
c in excess of $2 trillion per year.
d $950 billion per year.
e $150 billion per year.
The correct answer is e) $150 billion per year. Economic espionage, also known as industrial espionage, refers to the illegal and unethical practice of stealing trade secrets, confidential information, or intellectual property from companies.
This can be done through various means such as hacking, insider theft, and physical theft.Economic espionage poses a significant threat to firms in the United States, as it can result in lost profits, decreased competitiveness, and even bankruptcy. According to estimates, the cost of economic espionage to firms in the United States is approximately $150 billion per year. This cost includes the expenses associated with detecting and preventing espionage, as well as the losses incurred as a result of stolen information. Furthermore, the cost of economic espionage is not limited to large corporations; small and medium-sized enterprises are also at risk.To mitigate the risks associated with economic espionage, firms need to take proactive measures to protect their intellectual property and confidential information. This includes implementing cybersecurity measures such as firewalls and encryption, training employees on how to identify and report suspicious activity, and conducting regular audits to identify vulnerabilities.
In conclusion, economic espionage is a significant threat to firms in the United States, with an estimated cost of $150 billion per year. To protect themselves from this threat, firms need to take proactive measures to safeguard their intellectual property and confidential information.
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If Ju Li used a(n) ___________ approach to screening and evaluation, she would have employees evaluate the technical feasibility of selling the additive in addition to its bottled water products.
external
strengths analysis
potential threats
customer-driven
internal
If Ju Li used an internal approach to screening and evaluation, she would have employees evaluate the technical feasibility of selling the additive in addition to its bottled water products.
This approach would involve assessing the company's resources, capabilities, and potential threats before making any decisions. By involving internal stakeholders in the screening and evaluation process, Ju Li can ensure that the company is well-positioned to take advantage of new opportunities and can mitigate any potential risks.The internal approach to screening and evaluation involves evaluating the company's strengths and weaknesses, as well as any potential threats that could impact its success.
By conducting a thorough analysis of these factors, Ju Li can make informed decisions about whether or not to pursue the sale of the additive alongside its bottled water products.Overall, using an internal approach to screening and evaluation can help Ju Li make informed decisions about the future of the company. By involving internal stakeholders in the process, she can ensure that the company is well-positioned to take advantage of new opportunities and can mitigate any potential risks.
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What four techniques do producers usually use to deal with limited capital goods?
The four techniques that producers usually use to deal with limited capital goods are: Prioritization, Substitution, Specialization, Collaboration.
What four techniques do producers usually use to deal with limited capital goods?Producers often use the following four techniques to deal with limited capital goods:
Prioritization: Producers prioritize which projects or products to focus on based on the potential return on investment, market demand, and other factors. This allows them to allocate resources effectively and maximize their impact.
Substitution: Producers may substitute one capital good for another if it is more readily available or more cost-effective. For example, they may use a less expensive machine or equipment to produce a particular product.
Specialization: Producers may specialize in producing only a limited range of products or services, allowing them to concentrate their resources and expertise in that area.
Collaboration: Producers may form partnerships or joint ventures with other companies to pool resources and share the costs and risks of investment. This can help them overcome limitations on capital and achieve their goals more efficiently.
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the focus of the production era was on distribution and advertising. group of answer choices false true
False. The focus of the production era was on distribution and advertising is a false statement.
During the production era, the primary focus was on increasing production efficiency and meeting the high demand for goods, rather than on distribution and advertising. This era, which spanned from the Industrial Revolution until the 1920s, saw businesses primarily concentrating on manufacturing products in mass quantities. The assumption was that products would sell themselves due to the high demand, so businesses didn't emphasize distribution or advertising strategies. It wasn't until the sales era and the marketing era that followed, that companies started to put more effort into distribution, advertising, and understanding customer needs to stay competitive in the market.
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Consider the following problem:
A corporation plans to issue £1 million of 5-year bonds in 3 months. At current yields, the bonds would have a modified duration of 4 years. The corporation desires to hedge their interest rate exposure with 20-year T-bond futures which have a modified duration of 9 years. Each futures contract has a par value of £100,000 and currently sold at £90,000. The corporation estimates that the yield on 20-year bonds changes by 1 basis points for every 1.5-basis-point move in the yield on 5-year bonds
(i) How can the firm use this T-bond futures contract to hedge the risk surrounding the yield at which it will be able to sell its bonds? [20 marks]
(ii) Suppose that the yield on 20-year bonds actually changes by 1 basis points for every 1-basis-point move in the yield on 5-year bonds. Does the corporation have to review their decision on futures position?What should they do?
Conclusion for 1, 2 : However, if the firm had not hedged their interest rate risk and the yield on 20-year bonds increased by more than 9% due to changes in the yield on 5-year bonds, they would have lost money on the bonds.
(i) To hedge the risk surrounding the yield at which the firm will be able to sell its bonds, the firm can use a long position in 20-year T-bond futures. The futures contract allows the firm to lock in a price for the bonds at a future date, which in this case is 5 years from now. By selling the futures contract now, the firm is effectively hedging against the risk that the price of the bonds will be higher in the future, and therefore will be able to sell them for a lower price than if they were to issue them now.
(ii) If the yield on 20-year bonds actually changes by 1 basis point for every 1-basis-point move in the yield on 5-year bonds, the firm's decision to use futures to hedge their interest rate risk would still be valid. The firm's hedge would still be effective in offsetting the change in yield on the bonds, and they would not need to review their decision on the futures position.
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Consider the production function Q = 100√LK with the exogenous variables of w, r, K, and qo. Find the equation for the short-run total cost curve. a. q0/10000K. b. qo^2/10000K. c. wqo/10000K + rK. d. wqo^2/10000K +rK.
To find the equation for the short-run total cost curve, we need to determine the relationship between the cost of production and the level of output (Q) in the given production function.
The short-run total cost (TC) can be expressed as the sum of variable costs (VC) and fixed costs (FC).
VC represents the costs that vary with the level of output, while FC remains constant regardless of the level of output.
The variable costs can be calculated by multiplying the variable input (labor, L) by its corresponding price (w), while the fixed costs are determined by the fixed input (capital, K) and its corresponding price (r).
Given the production function: Q = 100√LK
We can express labor (L) in terms of output (Q) and capital (K) using the production function:
L = \((Q^2)/(100^2K)\)
Now, let's derive the equation for the short-run total cost curve.
Variable Costs (VC) = wL
= \(w(Q^2)/(100^2K)\)
Fixed Costs (FC) = rK
Short-run Total Cost (TC) = VC + FC
= \((w(Q^2)/(100^2K)) + rK\)
Therefore, the equation for the short-run total cost curve is:
d. \(wqo^2/10000K + rK.\)
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Which statement best summarizes the law of demand ?
A. Sellers only supply goods that are in high demand from buyers.
B. Buyers are more likely to buy a products that is supplied in large quantities.
C. Sellers can easily substitute a product in high demand with another product.
S. Buyers are more interested in purchasing products as those products decline in price.
Thank you :)
Buyers are more likely to buy a product that is supplied in large quantities.
What is the law of demand?The law of demand states that the quantity purchased varies inversely with the price. In other phrases, the better the rate, the lower the quantity demanded.
What are the types of demand?Individual and Market DemandOrganization and Industry DemandAutonomous and Derived DemandDemand for Perishable and Durable GoodsShort-term and Long-term DemandLearn more about the law of demand here https://brainly.com/question/24019366
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The disadvantages associated with a proprietorship are similar to those under a partnership. One exception relates to the more formal nature of the partnership agreement and the commitment of all partners' personal assets. As a result, partnerships do not have difficulty raising large amounts of capital.
a. True
b. False
Answer:
B
Explanation:
A sole proprietorship is when only one person runs a business
characteristics of a sole proprietorship
Unlimited liabilityOnly one person owns the businessLimited sources of capitalDoesn't exist perpetually.
A partnership is when at least two people come together to form a business
Features of a partnership :
1. Unlimited liability
2. Limited sources of capital as they cannot raises funds in the capital market.
SM.52 You are leading a team at a small online retailer to determine which warehouse management system to buy. The table below contains the weighted criteria for making this decision along with the raw scores for each of the three software options.
Criteria Weight Fishbowl Latitude SCExpert
Acquisition Cost 0.25 7 6 10
Maintenance Cost 0.25 8 9 3
Scalability 0.25 9 4 6
Features 0.25 5 8 8
What is Fishbowl's total weighted score? (Display your answer to two decimal places.)
What is Latitude's total weighted score? (Display your answer to two decimal places.)
What is SCExpert's total weighted score? (Display your answer to two decimal places.)
Which software package has the best weighted score for scalability? (In the answer field below, input the number that corresponds to your answer. Do not input a period with your number.)
- Fishbowl
- Latitude
- SCExpert
Scalability received the highest weighted score with a 2.25. As a result, Fishbowl has the software package with the highest weighted score for scalability.
What is the product management process flow?Understanding consumer needs, locating and choosing the appropriate merchandise, choosing the right assortment, planning the distribution of the merchandise to various locations in the right quantities, choosing the pricing, and communicating the merchandise offerings to the target customers are all part of the merchandising process.
For Fishbowl:
Acquisition Cost: 0.25 x 7 = 1.75
Maintenance Cost: 0.25 x 8 = 2
Scalability: 0.25 x 9 = 2.25
Features: 0.25 x 5 = 1.25
Total weighted score for Fishbowl = 1.75 + 2 + 2.25 + 1.25 = 7.25
For Latitude:
Acquisition Cost: 0.25 x 6 = 1.5
Maintenance Cost: 0.25 x 9 = 2.25
Scalability: 0.25 x 4 = 1
Features: 0.25 x 8 = 2
Total weighted score for Latitude = 1.5 + 2.25 + 1 + 2 = 6.75
For SCExpert:
Acquisition Cost: 0.25 x 10 = 2.5
Maintenance Cost: 0.25 x 3 = 0.75
Scalability: 0.25 x 6 = 1.5
Features: 0.25 x 8 = 2
Total weighted score for SCExpert = 2.5 + 0.75 + 1.5 + 2 = 6.75
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Cost-push inflation is caused by
increasing input prices. Which of the
following would NOT contribute to
increasing input prices?
A. expansionary monetary policy
B. a sharp decrease in the supply of oil
C. a sudden decrease in access to coal
1. Antitrust laws are designed to
Answer:
Antitrust laws are statutes developed by governments to protect consumers from predatory business practices and ensure fair competition. Antitrust laws are applied to a wide range of questionable business activities, including market allocation, bid rigging, price fixing, and monopolies
Explanation:
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During the 1990s, consumers started to drink bottled water instead of soft drinks. The Coca-Cola Company and PepsiCo decided to change their product lineup to include water products, indicating on the part of both companies.
Answer:
Strategic Flexibility
Explanation:
The strategy of developing a bottle water product line up shows strategic flexibility by Coca-Colca and PepsiCo.
It shows that these two beverages giants are not static, and instead, they adapt to market and cultural trends. When the market trend showed that people were flocking to bottle water from soft drinks, they decided to compete directly against bottle water producers by developing their own bottle water products.
Marta lends money at a fixed interest rate and then inflation turns out to be higher than she had expected it to be. The real interest rate she earns is Group of answer choices lower then she had expected, and the real value of the loan is lower than she had expected. lower than she had expected, and the real value of the loan is higher than she had expected. higher than she had expected, and the real value of the loan is higher than she had expected. higher than she had expected, and the real value of the loan is lower than she had expected.
Answer:
lower than she had expected, and the real value of the loan is lower than she had expected.
Explanation:
A loan can be defined as an amount of money that is being borrowed from a lender and it is expected to be paid back at an agreed date with interest.
Generally, the financial institution such as a bank lending out the sum of money usually requires that borrower provides a collateral which would be taken over in the event that the borrower defaults (fails) in the repayment of the loan.
Inflation can be defined as the persistent general rise in the price of goods and services in an economy at a specific period of time.
Generally, inflation usually causes the value of money to fall and as a result, it imposes more cost on an economy.
In this scenario, Marta lends money at a fixed interest rate and then inflation turns out to be higher than she had expected it to be. Thus, the real interest rate she earns is lower than she had expected, and the real value of the loan is lower than she had expected.
if i make $1,200 a month how much do i get at the end of the year for an early income
Answer:
$14,400
Explanation:
Seth is a manager at Click Systems. He leads a team of 20 employees, and Amanda is his least preferred coworker because he finds it difficult to cooperate with her. During an employee feedback session, Seth informs his boss that Amanda is unresponsive, insincere, lazy, and unfriendly. In this scenario, Seth has a _____ leadership style.
Answer:
task-oriented
Explanation:
Since in the question it is mentioned that the Seth who is a manager handling a team of 20 employees out of which Amanda is least coworker as it is very difficult to cooperate with her also she is insincere, lazy, etc
So, Seth has a task oriented leadership style as he leading a team of 20 employees whom he motivates, guides for accomplishing a task
One major reason businesses seek investment is to:
A. increase the opportunity cost of making new products.
B. boost their productivity by improving their inputs.
C. give them the ability to ignore production possibilities curves.
D. reduce their need for consistent financial growth.
One major reason businesses seek investment is to boost their productivity by improving their inputs. Option B is correct.
What is Investment?A purchase made with the intention of creating income or capital growth is known as an investment. An asset's value increasing over time is referred to as appreciation. When a person invests in a good, they do not intend to utilize it as a source of immediate consumption, but rather as a tool for future wealth creation.
An investment always involves the expenditure of some resource today time, effort, money, or an asset—in the anticipation of a future return greater than the initial investment.
For instance, an investor might buy a financial asset right away with the hope that it would provide income later on or that it can be sold for a profit at a higher price.
Thus businesses seek investment is to boost their productivity by improving their inputs in order to maximize wealth of owners of the business.
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