UPSC CSE Prelims
Question 5
Consider the investments in the following assets :
- Brand recognition
- Inventory
- Intellectual property
- Mailing list of clients
How many of the above are considered intangible investments?
View correct answer and explanation
Correct answer: C
Correct Option: C (Only three)
Explanation: Brand value, intellectual property and customer lists are intangible assets; inventory consists of physically held goods.
Statement / Pair / Item-wise Analysis:
1. Correct/True - Recognized brand value is a non-physical intangible investment.
2. Incorrect/False - Inventory consists of tangible goods or materials held for sale/use.
3. Correct/True - Patents, copyrights and other intellectual property are intangible.
4. Correct/True - A customer mailing list is a valuable non-physical business asset.
Option-wise Analysis:
A. Incorrect-it counts 1, but items 1, 3, 4 qualify, giving 3.
B. Incorrect-it counts 2, but items 1, 3, 4 qualify, giving 3.
C. Correct-exactly 3 of the 4 listed items satisfy the condition.
D. Incorrect-it counts 4, but only 3 qualify; item(s) 2 do not.