ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Lesson Summary. In business, an intangible benefit is a subjective benefit that cannot be touched and that is difficult to quantify or measure. Some examples of these benefits, difficult to quantify in monetary terms, are employee morale, satisfaction, and retention, customer satisfaction, and brand reputation.

Detailed explanation-2: -The intangible benefits would include raising customer satisfaction rate, improved employee motivation, growing market share, and better reputation for a company’s brand. In the IT industry, the intangible benefits are important, especially for many startup companies.

Detailed explanation-3: -While intangible assets do not generate cash flows independently, they enable a company to charge a premium price for its products, which generates more cash flow overall for the company and, in turn, creates a premium for the company stock price.

Detailed explanation-4: -In a cost-benefit analysis it is very difficult to assess the benefits of the product used by everyone. The benefit of the cost is nothing but adding up the costs comparing them with the benefits to get a real value. All other options are included in calculating the cost-benefit except the option “A”.

Detailed explanation-5: -An intangible asset is a non-physical asset. Examples of intangible assets include patents, trademarks, copyrights, goodwill, brand recognition, customer lists, and proprietary technology. Because an intangible asset has no physical form and isn’t easily converted to cash, calculating its value can be challenging.