Intangible assets often constitute a substantial source of value to the acquiring firm. Which of the following are not generally considered intangible assets?
A) Patents and technical know-how
B) Warranty and contingent claims
C) Trademarks and customer lists
D) Covenants not to compete and franchises
E) Copyrights and software

Question

Quizplus · Accepted Answer

Warranty and contingent claims are not typically considered intangible assets. Intangible assets are assets that do not have physical substance but have value, such as patents, trademarks, and customer lists. While warranties and contingent claims may be important liabilities to consider during due diligence, they are not assets that the acquiring firm can leverage or monetize in the same way as true intangible assets.

Intangible Assets Often Constitute a Substantial Source of Value to the Acquiring