Investment, raspunsuri la examen - Bunu Mariana

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• An investment may be defined as the purchase by an individual or institutional investor of a financial or real asset that produces a return proportional to the risk assumed over future investment period. • investment is considered to be a present expenditure, realized for the purpose of future effects in risk and uncertainty conditions. Elements of an investment The subject of investment. An investor can be an individual, a government, a pension fund, or a corporation that is willing to invest its resources. The investment object, that represents the business, building, plant, equipment or real estate for what the investment is initiated; Investment cost, that represents the financial, material (machinery, raw material, production space, and land), human effort made for the realization of the respective investment etc. Effects of the investment, which the profit that is expected to be obtained by the end of the investment’s life span. The risk, meaning the uncertainty of the future payments, which represents the possibility that the investor won’t receive his money or assets back or will receive them but at a lower value. The time funds are committed – represents the period of time during which the money or assets won’t be available to the investor.