Which statement best summarizes the relationship between investments and
productivity?
A. Companies use investments to pay for services that improve their
productivity.
B. Companies with high levels of productivity are the most likely to
need investment.
C. Companies use investments to avoid the need to increase overall
productivity
D. Companies must choose between high levels of productivity and
large investments.

Respuesta :

I believe the answer should be A since companies would use investment money to increase business productivity so that they can earn more profit, through that increase in productivity, and thus be able to give their investors (usually called shareholders) higher dividend payments (usually called dividends).

The best description of the relationship between investments and productivity is that A. Companies use investments to pay for services that improve their  productivity.

Investments made by companies include:

  • Increasing the production capacity factories
  • Buying more efficient machinery and equipment
  • Hiring more people

All of the above are needed to improve productivity which means that if a company wants to improve its productivity, it will need to make investments that enable it to do so.

In conclusion, investments are needed to increase productivity.

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