Final answer:
Investment strategies refer to the decisions organizations make regarding where to invest and how much capital to allocate to various projects, influenced by future profit expectations, interest rates, and financial capital sources.
Step-by-step explanation:
The term investment strategies refers to the choices an organization makes as to where and how much to invest. These decisions are crucial because they involve spending money in the present with the expectation of earning profits in the future. Investment can take various forms, such as the purchase of long-lasting equipment, the construction of new facilities, or the initiation of research and development projects. Firms rely on different sources of financial capital for these investments, including money from early-stage investors, reinvesting profits, borrowing through banks or bonds, and selling stock. It's not just about which projects to fund, but also about how to finance them; choices that can significantly affect the future of the business. Factors like expectations of future profits, interest rates, and the choice of financial capital sources impact investment decisions significantly.