Finance, Investments
What are real investments?
Very often under investments, experts literally understand the way to part with a large sum of money in order to get a substantial income in the future. All monetary investments are conventionally divided into real and financial. In this article, we will consider in more detail such a type as real investment.
Definition
Forms of real investment:
- New product lines.
- Gradual expansion of the output of products or increase the range of goods.
- Creation of such working conditions, under which the enterprise itself will bear somewhat lower costs. This category includes the following parameters: modernization of equipment, improvement of technological solutions, improvement of working conditions for employees, use of completely new materials. Such real investments are primarily aimed at increasing the competitiveness of the whole enterprise, therefore, its position in the market will be slightly higher compared to other organizations.
- Financial investments necessary to create such a system of labor protection and environmental safety, which will meet all the regulatory requirements that currently exist in the territory of any country. The main task of this type of investment is to meet those requirements and regulatory conditions that the state puts forward.
Management of real investments. Main advantages and disadvantages
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