UPSC Prelims 2023 · Question 48 of 97
UPSC Prelims 2023 question on Intangible Assets
- ExamUPSC CSE
- Year2023
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicImportant Economic Concepts
- DifficultyMedium
- TypeStatement
Consider the investments in the following assets:
1. Brand recognition
2. Inventory
3. Intellectual property
4. Mailing list of clients
How many of the above are considered intangible investments?
Show answer
Answer: C. Only three
Analysis
An intangible asset is an identifiable non-monetary asset, without physical substance, held for use in the production or supply of goods or services, for rental to others, or for administrative purposes.
Items 1, 3, and 4 are intangible investments → Option (c) Only three.
Statement by statement
Statement 1 – CORRECT: Brand recognition is an intangible asset. Market knowledge and trademarks (including brand names and publishing titles) are common examples of intangible investments.
Statement 2 – INCORRECT: Inventory is a tangible asset. Tangible assets are typically physical assets or property owned by a company, such as equipment, buildings, and inventory.
Statement 3 – CORRECT: Intellectual property is an intangible asset. Common examples include computer software, patents, copyrights, motion picture films, etc.
Statement 4 – CORRECT: Mailing list of clients (customer lists) is an intangible asset — a common example of items encompassed by intangible investments.