Final answer:
Intangible assets are non-physical but valuable assets in business, which include brand recognition, intellectual property, licenses, and goodwill. Unlike tangible assets, intangible assets cannot be seen or touched but are essential to a company's value and operation.
Step-by-step explanation:
Examples of Intangible Assets
Intangible assets are valuable assets that you cannot physically touch or see, but they have a monetary value for a business. Here are four examples:
- Brand recognition: The value that a strong brand can bring to a company. This could include brand names, trademarks, and associated goodwill.
- Intellectual property: This category includes patents, copyrights, trade secrets, and proprietary technologies, which protect innovative products or ideas.
- Licenses: The rights one party grants to another to use intellectual property, like software licenses, franchise agreements, or broadcasting rights.
- Goodwill: This arises when a company acquires another company for more than the net assets of the acquired company. It represents things like customer relationships, brand reputation, and employee skills.
Unlike tangible assets such as collectibles, jewelry, or fine wine, these assets do not have a physical form but can be critical to a company's value and success.