From the course: Finance Strategies for Business Leaders

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Assets and investments

Assets and investments

From the course: Finance Strategies for Business Leaders

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Assets and investments

- Companies invest in different types of assets, like buildings and land. Plus, assets can include equipment that wears out, like forklifts or trucks, and research and development assets, like patents and even trademarks. All of these assets have varying degrees of value. Some, like R&D or equipment, can help boost future income, while other assets, like buildings or land, mitigate future costs and reduce future risks. This trade off between assets that generate income and assets that hedge against future costs is an important trade off that finance leaders need to balance. No matter how much cash you have or how much leverage you can get, making the right decisions about what assets to invest in is critical. I've seen companies prioritize having a building over investing in new technology because they wanted their employees, their customers, and clients to have a feeling of permanence when they thought of the…

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