Long-Term Investment in General Concept
The decision of long-term investment or as it's called the decision of capital expenditure constitutes among the most significant and serious financial decisions. It's not only due to what is related to this decision including expending substantial amounts compared to the expenses, but also because the retune of this investment can't be obtained before a long period of time in the future as a minimum.
|Objectives and target group||
What's the Concept of Long-Term Investment?
The process of making long-term decision is often adopted by improvised methods depending primarily on the personal assessment. Where it has huge impacts on the future arise from the hugeness of the invested amounts in addition to the length of the future period resulting from this decision. However, the decision of long-term investment shall be taken on the basis of the knowledge and the skill related to decision-making with its sub-elements, which are represented in the cash, the securities, the accounts receivable, the inventory, and other elements directed to the capital. In addition, it shall depend on the focus on the effective management for each of its sub-elements.