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Q28·GS Paper 1 · Prelims 2023

Intangible investments — brand recognition, inventory, intellectual property, mailing list

EconomyMacroeconomics & GrowthHow-many countingMediumStatic

Question

Consider the investments in the following assets: How many of the above are considered intangible investments?

  1. 1.

    Brand recognition

  2. 2.

    Inventory

  3. 3.

    Intellectual property

  4. 4.

    Mailing list of clients

Options

a

Only one

b

Only two

c

Only three

Answer
d

All four

Explanation

Brand recognition, intellectual property (patents/copyrights), and a mailing list of clients are all highly valuable business assets that lack physical substance; hence, they are classified as intangible investments. Inventory consists of physical goods waiting to be sold, making it a tangible current asset.

Intangible assets possess zero physical form but grant legal or market advantages, generating future economic value.

Answer: (c).

Question details

Year

2023

Paper

GS Paper 1

Question

Q28

Subject

Economy

Sub-topic

Macroeconomics & Growth

Type

How-many counting

Difficulty

Medium

Nature

Static

Source hint

NCERT Economy Cl.12 / Intangible Capital Formation

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