Question

Which statement best summarizes the relationship between investments and

Answer 1

The correct answer is A. Companies improve their productivity using money from investments.

Explanation

An investment is an economic concept to refers to a contribution of capital (money or other) to obtain a future profit. This placement supposes an election that resigns an immediate benefit for a future one. On the other hand, productivity is an economic term that refers to a measure that determines the profit obtained from the goods or services produced concerning the minimum indispensable production quota. According to the above, when a company has enough capital, it invests it to improve its production, advertising, sales equipment, among others, to obtain better production processes and see that improvement reflected in its profits. For example, a company that makes T-shirts may invest in sewing machines and employees to produce more T-shirts and earn higher profits. So the correct answer is A.