What term describes the act of spending capital today with the expectation of future profit increase?

The term that accurately describes the act of spending capital today with the expectation of future profit increase is investment. This concept is central to business and economics, as it involves allocating resources, typically capital, in a way that aims to generate returns over time.

When a business invests, it may purchase new equipment, enhance facilities, or allocate funds to research and development. The underlying principle is that these expenditures are not merely costs; rather, they are strategic moves intended to yield higher revenues or profits in the future. Investment is crucial for growth, as it helps businesses innovate, expand operations, and improve productivity, all of which contribute to potential profit increases down the line.

In contrast, the other terms do not embody the same idea of future profit expectation from current spending. Saving refers to setting aside funds for future use without implying a direct intention for generating profit. Revenue pertains to the income generated from business activities, while expense represents costs incurred in the process of conducting business, none of which emphasize the proactive strategy of spending to invest in future profitability as clearly as investment does.