Intangible assets add great value to a firm primarily because the firm's
A) reputation and brand equity are accumulated quickly and can be leveraged easily.
B) knowledge and culture take time to develop and are generally difficult to imitate.
C) tangible assets require a higher degree of capital than its intangible assets.
D) capabilities are by nature typically tangible.

Question

Quizplus · Accepted Answer

Intangible assets add great value to a firm primarily because the firm's culture and knowledge take time to develop and are generally difficult to imitate. Competitive advantage is more likely to spring from intangible rather than tangible resources. A firm's brand name, reputation, culture, knowledge, and intellectual property must be built, often over long periods of time.

Intangible Assets Add Great Value to a Firm Primarily Because