Intangible investments — brand recognition, inventory, intellectual property, mailing list
Question
Consider the investments in the following assets: How many of the above are considered intangible investments?
- 1.
Brand recognition
- 2.
Inventory
- 3.
Intellectual property
- 4.
Mailing list of clients
Options
Only one
Only two
Only three
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.
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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