Question

What type of long term assets have no real physical form but do have value?

Answer 1

Intangible assets, such as patents, trademarks, and goodwill, lack physical presence but possess significant economic value.

Step-by-step explanation:

Intangible assets encompass valuable non-physical assets crucial to a company's operations and competitive edge. These include intellectual property like patents, copyrights, and trademarks, representing legal rights to ideas, inventions, or creative works. Goodwill, an intangible asset derived from brand reputation and customer loyalty, contributes substantially to a company's value. Other intangibles involve contracts, licenses, and software. Despite their lack of physical substance, these assets are pivotal in generating revenue and sustaining a competitive advantage. Their value often appreciates over time, adding to a company's overall worth and market position.

So, intangible assets, like patents, trademarks, and goodwill, form a vital part of a company's value despite not having a tangible, physical presence.

Answer 2

Intangible assets are long-term assets that have value but no physical form, and include things like intellectual property and brand recognition. They are different from tangible assets such as collectibles, which can be used and potentially sold for a profit but don't offer consistent high returns.

Step-by-step explanation:

The type of long-term assets that have no real physical form but do have value are known as intangible assets. Unlike tangible assets such as collectibles, intangible assets include things like intellectual property, brand recognition, and patents. While tangible assets like paintings, fine wine, jewelry, and baseball cards can be enjoyed and may increase in value over time, they are not expected to consistently provide a higher-than-average rate of return. Conversely, intangible assets contribute to a company's value but are not physical objects.