Question

an online retailer just made a large capital investment by purchasing over $100 million in robotics to help speed up its packing department. which function of money is this in example of ?

Answer 1

By purchasing the robotics to help speed up the company's packing department, they are leveraging competition and costs by spending now to save in the future. This is considered working capital because it is the capital used in every day business operations and functions that creates a streamline of work and ease for the company and its employees.

Answer 2

The function of money is the leverage and working capital that it will be used as an investment in business to improve production in terms of time and costs, which translates into greater production and income for the retailer.