Investment
Purchasing assets expecting future returns: financial (stocks, bonds), physical (equipment, property), business (equity ...
Formula
Return on Investment (ROI) = (Net Profit / Cost of Investment) × 100
Real World
Tesla's 2020 decision to invest $1.5 billion in Bitcoin was a business investment in a financial asset, aiming for capital growth rather than operational use.
Exam Focus
When 'assessing' an investment decision, always weigh expected return against risk and opportunity cost for full marks.
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