Consider the investments in the following assets:Brand recognitionInventoryIntellectual propertyMail

Question

Consider the investments in the following assets:Brand recognitionInventoryIntellectual propertyMailing list of clientsHow many of the above are considered intangible investments?

Accepted Answer

An intangible asset is an identifiable non-monetary asset, without physical substance, held for use in the production or supply of goods or services, for rental to others, or for administrative purposes.Enterprises frequently expend resources, or incur liabilities, on the acquisition, development, maintenance or enhancement of intangible resources such as scientific or technical knowledge, design and implementation of new processes or systems, licences, intellectual property, market knowledge and trademarks (including brand names and publishing titles).Common examples of items encompassed by these broad headings are:Computer softwarePatentsCopyrightsMotion picture filmsCustomer listsMortgage servicing rightsFishing licencesImport quotasFranchisesCustomer or supplier relationshipsCustomer loyaltyMarket shareMarketing rightsGoodwill is another example of an item of intangible nature which either arises on acquisition or is internally generated.Tangible assets are typically physical assets or property owned by a company, such as equipment, buildings, and inventory.