Analyze the Reasons Why Individuals and Businesses Invest.

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Analyze the Reasons why individuals and businesses invest. Individuals and businesses invest their income for many purposes. Individuals invest their money to increase their personal profit, and become well known in their industry, whilst businesses invest their money to expand their services, and help the community. Firstly the main purpose in investing money is to earn a large income. Individuals take a higher risk then businesses, because the money being spent is the profit that that individual is investing. It is a higher risk, but the return would be higher, due to the person being an individual. Another reason for individuals to invest their income is so that they can be well known by consumers and the competition. By spending their own income, it proves that investors would do whatever it takes to gain a high income. Secondly businesses invest their money, so that they can expand their services. If a business invests its income to aim in providing their goods or services to a wider verity of people and places, it would make them well known. Another reason for them to invest their money is to enhance their community. If a community has successful businesses which provide money and help the community grow, it will attract more consumers to all the other businesses which would boost their income. Listed above are some of the reasons why individuals and businesses invest their money. Investing money helps for many purposes, and helps boost a person or company’s income and

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