Final answer:
A leasehold is an example of an intangible asset. It represents a right to use a property rather than actual physical ownership, distinguishing it from tangible assets like real estate or machinery.
Step-by-step explanation:
Leasehold is an example of intangible assets. Unlike physical items such as houses, land, or art, which are tangible and can be touched and seen, a leasehold represents a right to use a property for a specified period. It does not constitute the actual ownership of the physical property itself and thus cannot be touched or seen, which defines its intangible nature.
Assets can be categorized in many ways, and one common method is by their physical nature, separating them into tangible and intangible assets. Tangible assets are physical items such as buildings, machinery, or vehicles, whereas intangible assets include items such as patents, trademarks, and leaseholds. Leasehold rights grant the lessee the ability to use and operate the property, which is valuable but not in a physical form.