The Efficiency of Investments in Business in the Context of the Business's Market Value Added

A condition for growth and the purpose of a business is to maximise the benefits for its owners which come from the increase in the business's market added value. One of the elements of the growth of the market value of a business is new investments. In a situation of increasing efficiency of the business, that is a faster growth of the effects of the investments compared to the increase in expenditures, the business creates (added) value that raises its market value. The objective of this article is to show the importance of investment risk in business operations and the connection between the efficiency of an investment (return on investment) and the execution of the main purpose of the activity (growth) of the business with a special attention paid to the specific stages of its growth.