Consider the investments in the following assets:1. Brand recognition2. Inventory3. Intellectual property4. Mailing list of clientsHow many of the above are considered intangible investments?
✓ Correct answer: c) Only three
ExplanationInvestments can be categorized into tangible and intangible assets.Tangible assets have a physical presence, while intangible assets lack a physical form.Intangible assets derive their value from intellectual or legal rights.Option (c) is correct :Brand recognition is an intangible asset because it does not have a physical form but contributes significantly to a company’s value.Strong brand recognition enhances consumer trust, customer loyalty, and market competitiveness.Example: Coca-Cola’s brand value is estimated at billions of dollars, despite not being a physical asset.Intellectual property (patents, trademarks, copyrights, trade secrets) is intangible and provides significant competitive advantage.Example: Patents for pharmaceutical drugs are valuable intangible investments for pharma companies.Mailing List of Clients is an intangible asset because it enhances marketing capabilities and customer retention.Example: E-commerce companies leverage customer mailing lists for targeted marketing.UPSC GS Paper-I PYQs 256 Inventory consists of physical goods that a comp
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