Final answer:
Assets refer to financial, physical, and sometimes intangible properties owned by a firm or individual, which are key to investment strategies, potentially yielding financial returns like capital gains.
Step-by-step explanation:
Financial, physical, and sometimes intangible properties an organization owns are collectively referred to as assets. An asset is an item of value that a firm or individual owns. Engaging in investment strategies often involves acquiring assets that will yield returns over time. Businesses may invest in assets such as machinery expected to last for years, real estate or commence research and development projects. These assets have the potential to generate profit, usually reflected as capital gains and other potential returns. For instance, housing is not just a place to live; it is also considered a form of financial investment that can appreciate over time, offering both nonfinancial returns (shelter) and potential financial returns (capital gains). Similarly, other physical items like art, land, or collectibles, including rare coins or stamps, can be assets that individuals buy to sell later for a profit. The acquisition and management of such assets are crucial for both individuals and organizations as they plan for financial growth and stability. Making informed decisions about which assets to invest in and understanding the liquidity and risks associated with them are key components of effective investment strategies.