Economy
2023
Basic Economic Terms
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?
C.Only three
B.Only two
D.All four
A.Only one
Correct Answer: Option C
An intangible asset is a non-physical asset that can be identified. These assets are used to produce or supply goods/services, for rental, or for administrative purposes.
Examples of intangible assets include:
- Brand recognition
- Scientific or technical knowledge
- Designs
- Licenses
- Intellectual property (patents, copyrights)
- Market knowledge
- Trademarks
- Computer software
- Customer lists
- Customer loyalty
- Marketing rights
Tangible assets are physical assets like equipment, buildings, and inventory.
Therefore, brand recognition, intellectual property, and mailing list of clients are intangible investments, while inventory is a tangible asset.
Hence, only three of the above are considered intangible investments.
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