Prelims 2023

Q68. Consider the investments in the following assets:
1. Brand recognition
2. Inventory
3. Intellectual property
4. Mailing list of clients

How many of the above intangible investments?
a. Only one
b. Only two
c. Only three
d. All four

Question from UPSC Prelims 2023 GS Paper

Explanation : 

c. Only three

Intangible Investments

1. Brand recognition is an intangible investment because it represents the value of a company’s reputation, name, and image in the market, which cannot be physically touched or seen.

2. Inventory is not an intangible investment, as it consists of physical goods and materials that a company holds for sale or production.

3. Intellectual property, such as patents, copyrights, and trademarks, is an intangible investment because it represents the legal rights and protections granted to a company’s creations, which cannot be physically touched or seen.

4. Mailing list of clients is an intangible investment because it represents the value of a company’s relationship with its customers, which cannot be physically touched or seen.

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