Investment is not affected by current profits; it is affected by expected future profits only.

Name: Investment is not affected by current profits; it is affected by expected future profits only.
Brand: Quizplus
Rating: 4.8 (31 reviews)

Question

Quizplus · Accepted Answer

Investment decisions are influenced by both current profits and expected future profits, as current profits can provide the necessary capital and signal the firm's financial health, while expectations about future profits influence the potential return on investment.

Investment Is Not Affected by Current Profits; It Is Affected