There Are Two Primary Reasons to Conduct an Intellectual Property

question 16

Multiple Choice

There are two primary reasons to conduct an intellectual property audit. First, it is prudent for a company to periodically determine whether its intellectual property is being properly protected. The second reason for a company to conduct an intellectual property audit is to ________.

• A) remain prepared for a Security & Exchange Commission spot inspection
• B) remain prepared to justify its value in the event of a merger or acquisition
• C) remain prepared for an initial public offering
• D) update the value of its intellectual property on its balance sheet
• E) make sure no intellectual property has been stolen

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Definitions:

Gains Incurred

Increases in equity (excluding contributions from owners) that stem from peripheral or incidental transactions of a company.

Accumulated Depreciation

The cumulative sum of depreciation costs allocated to an asset from the time it was first used.

Disposal

The act of getting rid of an asset through sale, exchange, retirement, or destruction, typically reflected in financial statements.

Plant Asset

Long-lived, tangible assets used in the operations of a business, typically including buildings, machinery, and equipment.