Consider the investments in the following assets:
1. Brand recognition
2. Inventory
3. Intellectual property
4. Mailing list of clients
How many of the above are considered intangible investments?
(a) Only one
(b) Only two
(c) Only three
(d) All four
The correct answer is (c), only three.
Explanation:
Intangible investments are investments in assets that do not have a physical form. This includes things like brand recognition, intellectual property, and mailing lists of clients. Inventory is a tangible asset, as it is a physical good that can be seen and touched.
Brand recognition is an intangible asset because it is a measure of how well-known and respected a company’s brand is. This can be difficult to quantify, but it can be a valuable asset for a company.
Intellectual property is an intangible asset because it is a creation of the mind. This can include things like patents, trademarks, and copyrights. Intellectual property can be a valuable asset for a company because it can give the company a competitive advantage.
A mailing list of clients is an intangible asset because it is a list of potential customers. This can be a valuable asset for a company because it can be used to market to these customers.
Inventory is a tangible asset because it is a physical good that can be seen and touched. This includes things like raw materials, work-in-progress, and finished goods. Inventory can be a valuable asset for a company because it can be used to generate sales.
Inputs from Indian Economy Mindmap Notes & Internet
