Which of the following statements is true of intellectual capital?
A) The value of an organization's intellectual capital is best reflected in the conventional accounting reports.
B) Intellectual capital consists of all intangible assets of an enterprise that contribute to its competitive advantage.
C) Intellectual capital is hard to distinguish from other sources of capital owned by an organization.
D) Intellectual capital does not include the knowledge stored as documentation about business processes, procedures, policies, contracts, and patents.

Question

Quizplus · Accepted Answer

Intellectual capital includes all intangible assets of an enterprise that contribute to its competitive advantage, such as knowledge, expertise, technology, customer relationships, and brand. It is distinct from other sources of capital, such as financial or physical capital. Conventional accounting reports do not fully capture the value of intellectual capital, which is why alternative methods, such as intellectual capital statements or balanced scorecards, have been developed. Knowledge stored as documentation about business processes, procedures, policies, contracts, and patents is considered part of intellectual capital.

Which of the Following Statements Is True of Intellectual Capital