Asked by Dylan Wright on Jun 04, 2024
Verified
Which of the following statements about intangible assets is true?
A) Intangible assets can influence a firm's profitability.
B) Intangible assets are comparatively social in nature.
C) Intangible assets can be just as valuable as tangible assets.
D) Intangible assets can influence a firm's ability to innovate and change.
E) All of these statements are true.
Intangible Assets
Non-physical assets that have value, such as intellectual property, brand recognition, and goodwill.
Tangible Assets
Physical and material assets such as machinery, buildings, and inventory, which have a value and exist physically.
Profitability
The ability of a business to earn a profit, or the degree to which its revenues exceed its expenses.
- Recognize the importance of intangible assets and their influence on firm profitability and innovation.
Verified Answer
ZK
Zybrea KnightJun 05, 2024
Final Answer :
E
Explanation :
All of the statements about intangible assets are true. Intangible assets include things like patents, trademarks, and brand reputation which can all have a direct impact on a firm's profitability. Many intangible assets are related to social factors such as customer loyalty and company culture. Additionally, intangible assets can be just as valuable (if not more valuable) than tangible assets like property or equipment. Finally, intangible assets can give a company a competitive advantage by allowing them to innovate and adapt to changing market conditions.
Learning Objectives
- Recognize the importance of intangible assets and their influence on firm profitability and innovation.
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