Investments can be made in a variety of business opportunities. Some companies invest their profits into passive income streams, or investments that generate income with minimal work, to earn money for additional projects. They also may invest capital into business operations to increase production. Companies typically use their corporate finance department to determine which investments will pay the most interest.

Large companies invest in smaller businesses to develop relationships and earn an interest amount on their invested capital. Small businesses represent new opportunities to create and build relationships that may reach more consumers. Companies can outsource research and development projects to smaller businesses that are more willing to take on risk. Large companies may also be able to invest smaller amounts of capital into multiple small businesses in order to maximize their business relationships and potential footprint in the economic marketplace.

Companies can gain decision-making authority or dividends when they buy stock or equity securities in other publicly held companies. Preferred stock usually pays dividends; companies will invest in this to generate a passive income stream of dividend payments. Common stock usually comes with voting rights. Companies who purchase enough common stock may claim significant ownership of the other company and be able to use it as a subsidiary business partner.

Buying a competitor can pay significant returns. The purchase of smaller competitors in a company's industry or sector will allow it to increase its market share and benefit from the business operations or technologies of the competitor. Publicly held companies can buy competitors in non-cash, all-stock transactions. All-stock investment helps companies retain their capital for making other improvements in business operations while purchasing a competitor.