Question

What are the differences between tangible and intangible resources? Which category of resources is more valuable to the firm?

Answer 1

Tangible Assets have Physical presence but Intangible assets does not have physical presence.

Tangible asset are depreciated and Intangible asset are amortized.

Tangible assets Increase the market value of company and Intangible asset increase the revenue of the company.

tangible asset are destroyed by natural event like fire, storm etc but intangible assets are destroyed by failure of business.

Tangible assets are Land, Building, vehicles etc and Intangible assets are goodwill, patent and right, license etc.

Both have different views of importance, both assets are important for the business. Tangible asset increase the net value of the business and Intangible asset increase the capability to increase the revenue of the business. They both contribute to make the business worthy.

Answer 2

Tangible resources are physical resources that can be seen, touched and often they can be either developed internally or acquired by using capital.

Intangible resources are resource that are developed as a result of the human mental effort and often includes intellectual capital, brand names, experise of the employees, research and development and even the customer loyalty.

Both type of resources are necessary for the company to function and to operate. But in the long run, to get an competitive advantage over the competition, Intangible resources plays a vital role.

Step-by-step explanation: