How do assets create value for our business? Investing decisions affect a company’s profits, risk, and value. Investment decisions that result in fixed costs increase risk and the ability of a company to create higher profits and sales. Managing risk involves selecting the amounts and types of long-term assets a company uses. Those decisions also affect performance measures such as return on assets. Asset costs affect net income as assets are consumed and total assets increase as more assets are acquired. A low return on assets is an indicator of poor investing decisions. If a company is not satisfied with its investing decisions and the performance of its assets, what can it do to improve that performance?