Which of the following assets are the examples of intangible assets of an enterprise? Each correct answer represents a complete solution.
Choose two.
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A. B. C. D.AB.
Assets are the economic resources owned by business or company.
Anything tangible or intangible that one possesses, usually considered as applicable to the payment of one's debts, is considered an asset.
An asset can also be defined as a resource, process, product, computing infrastructure, and so forth that an organization has determined must be protected.
Tangible asset: Tangible are those assets that has physical attributes and can be detected with the senses, e.g., people, infrastructure, and finances.
Intangible asset: Intangible are those assets that has no physical attributes and cannot be detected with the senses, e.g., information, reputation and customer trust.
Intangible assets are assets that cannot be touched or physically measured but they represent a significant value to an enterprise. They include items such as goodwill, patents, copyrights, trademarks, and intellectual property.
Out of the options provided, the two assets that are examples of intangible assets of an enterprise are:
A. Customer trust: This refers to the degree to which a customer believes that a company will deliver on its promises. It is an intangible asset because it cannot be physically measured or quantified. However, it is of great value to a company because it can lead to increased customer loyalty and repeat business.
B. Information: This refers to any data or knowledge that a company possesses. Information is an intangible asset because it cannot be physically touched or measured, but it can be of great value to a company. For example, a company's customer database or proprietary research and development may be considered intangible assets.
C. People and D. Infrastructure are not intangible assets but rather tangible assets. People refer to the employees of a company, who are considered to be a part of the company's human capital. Infrastructure refers to the physical assets of a company, such as its buildings, equipment, and machinery. These are all tangible assets because they can be physically touched and measured.