Investment vs. Business

An investment is an asset or item that is purchased with the hope that it will generate a fixed income or appreciate in value at some point in the future. An Investment always concerns the outlay of some asset today (time, money, effort, etc.) in hopes of a greater payoff in the future than what was originally put in.

A business is an activity which could give either profit or loss.


The main difference between investment and business is that in investment you're guaranteed a fixed return on whatever sum you've invested. Investment has a fixed return called Return on Investment (ROI) while in business you either make profit or loss.




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