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Depreciation, Investment, Gross investment, Net investment and Entrepreneur defined

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Depreciation: when the value of an asset goes down with constant use, because of wearing/tearing

Investment: the getting of more capital goods, an increase in number

Gross investment: the value of the investment when first bought.

Net investment: the actual value. Gross investment - depreciation = net investment

Entrepreneur: the person who takes all the risk in the company. If the company is small, only the entrepreneur takes risks. If it is big, shareholders and other people do as well.

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by: Admin
Total views: 1294
Word Count: 240
Date: Sun, 21 May 2006 Time: 12:00 AM
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