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. Intangible assets have no physical form. Brand recognition, intellectual property and a client mailing list are intangible. Inventory (stock of goods) is a physical, tangible asset. So only three.
Watch for: A mailing list looks too ordinary to be an asset, but it is an intangible business asset.
Why the other options are wrong
- A. Wrong because three of the four are intangible.
- B. Wrong because three of the four are intangible.
- D. Wrong because inventory is a tangible asset.
Source to check: Indian Accounting Standard (Ind AS) 38, Intangible Assets (Ministry of Corporate Affairs)
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.