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"capital" investment is the major basic component of a business operation. "justify"this statement with examples ​

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Answer:

See below

Step-by-step explanation:

Capital investment is the sourcing of funds for business expansion and growth. It involves acquiring money to finance long term projects or assets that will add value to a business for many years.

Through capital investments, a business acquires assets used in producing goods or the provision of services. It enables a company to upgrade, expand, or diversify to meet customer demands or react to market changes.

Capital investment has been useful to businesses in many ways. For example

1. When labor or the costs of doing business becomes costly in one country, a company may need to relocate to a country with more favorable conditions. It requires heavy financing to relocate. Capital investments make such moves possible.

2. With the advent of technological advancement, companies need to invest in new technology to remain competitive. Capital investments help a business acquire modern technology and remain in operations.

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