ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Tangible assets are the main type of assets that companies use to produce their product and service. Intangible assets are non-physical assets that have a monetary value since they represent potential revenue. Intangible assets include patents, copyrights, and a company’s brand.

Detailed explanation-2: -An intangible asset is a non-monetary asset that cannot be seen or touched. “Patents or goodwill are good examples, ” says Florence Bessette, Business Advisor, BDC Advisory Services. Tangible assets are physical things. Examples include land, buildings, vehicles, furniture, and equipment.

Detailed explanation-3: -Tangible assets are usually physical objects (like equipment and inventory) while intangible assets are valuable assets that can’t be touched (such as trademarks). Both tangible and intangible assets have value and can be bought and sold. It is easier to establish the value of a tangible asset than an intangible asset.

Detailed explanation-4: -Intangible products are goods sold by a company that are not physical in nature. The most popular are usually products that exist digitally, such as licenses and software. Despite not being a physical product, intangibles are still extremely valuable, though their value is a bit more difficult to sell.

Detailed explanation-5: -The main types of intangible assets are goodwill, brand equity, Intellectual properties (Trade Secrets, Patents, Trademark and Copyrights), licensing, Customer lists, and R&D.