Investments Other Than Fixed Assets- An Encyclopedic Theoretical Review

Abstract

Finance is a panacea for all ills .of the organization. One of the possible determinants of the exposure of companies to economic fluctuations might be their investment intensity, i.e. the increase in their long-term (tangible) assets. Because investments once made tend to be difficult to be disposed of at favorable terms, any unjustified investments may have a strong adverse effect on companies' sustainability, especially during the time of economic decline. Investment intensity has been found to work as a signal about future profitability. No organization can sustain without determining its investment strategy excluding fixed asset, which ensures long term profitability of the concern. Hence, optimal investment strategy is particularly useful to companies considering expansion or capital investment. Therefore, the application of investment other than fixed asset generally includes investment in real asset, bonds, company holding, financial instruments, rentals for capital appreciation, etc. In this context researchers have studied the encyclopedia, Oxford Dictionary, Financial Dictionary and Webster Dictionary and has reviewed the following key words: Investment, Fixed Asset, Profitability, Income, Earnings Capital Employed, Shareholders Wealth, Asset Structure and Returns.