5.1 Investment decisions Investment is putting money in order to make a profit There are a number of reasons why businesses could do this Business could invest in new machinery, factories, other firms or their own workforce. To increase their profit levels Individuals invest their savings in order to achieve some future goal. Examples like, extra income, future security, fund a holiday or a for retirement. Government may invest in areas such as education, road, railway or justice system. To Case study (decisions, decisions) Buying shares from an internet broker could be cheaper than a stockbroker. However, it could be too confusing for a first timer and includes a high risk. Managed fund is a pool of money that comes from people who have similar investment goals. It is invested by a fund manager in assets such as properties and shares Superannuation is a way of saving so an employee has money in retirement. Debentures are better than unsecured notes because if the firm you lend the money went to liquidation you will still be the first creditor in line to be repaid.