INTANGIBLE ASSET Meaning and
Definition
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An intangible asset refers to a type of asset that lacks physical substance. It represents an identifiable non-monetary asset that cannot be touched, seen, or measured. These intangible assets are typically unique and valuable to a company or an individual, contributing to their distinct competitive advantage and generating economic benefits and value over a specific period.
Examples of intangible assets include intellectual property, such as patents, trademarks, copyrights, and trade secrets. They provide exclusive rights and protection for inventions, brand names, creative works, or proprietary business processes. Additionally, brand recognition, customer loyalty, reputation, and goodwill are also considered intangible assets. These intangible assets are usually built over time through effective marketing, customer service, and overall positive brand associations.
Financially, intangible assets are recorded on a company's balance sheet and can have a substantial impact on their overall value. However, valuing intangible assets can be challenging since their worth is subjective and not easily quantifiable. Companies often hire experts or use specific valuation models to determine the fair value of intangible assets.
Intangible assets differ from tangible assets, which are physical possessions that hold certain monetary value, like buildings, equipment, and inventory. Despite their intangible nature, these assets play a crucial role in enhancing a company's market position, attracting investors, and contributing to long-term business success.
Common Misspellings for INTANGIBLE ASSET
- untangible asset
- jntangible asset
- kntangible asset
- ontangible asset
- 9ntangible asset
- 8ntangible asset
- ibtangible asset
- imtangible asset
- ijtangible asset
- ihtangible asset
- inrangible asset
- infangible asset
- ingangible asset
- inyangible asset
- in6angible asset
- in5angible asset
- intzngible asset
- intsngible asset
- intwngible asset
- intqngible asset
Etymology of INTANGIBLE ASSET
The etymology of the word "intangible" comes from the Latin word "intangibilis", which was derived from the prefix "in-" meaning "not" and "tangibilis" meaning "able to be touched". It originally referred to something that could not be physically touched or grasped. The term "asset" has a separate origin, coming from the Latin word "ad-" meaning "to" and "satis" meaning "enough" or "sufficient". In the context of "intangible asset", the word "asset" refers to something of value or worth. Hence, the term "intangible asset" describes a valuable resource or property that lacks physical substance and cannot be directly touched or seen.
Similar spelling words for INTANGIBLE ASSET
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