Intangible Assets Make Up 40 Percent of the Total Assets

question 59

Multiple Choice

Intangible assets make up 40 percent of the total assets of a particular firm.This firm is most likely to be:

• A)a pharmaceutical firm that invests in internal research and development to create new drugs.
• B)a consumer products company that invests in advertising to create brand recognition.
• C)an information processing company that develops computer software to use in its business.
• D)a restaurant business that has grown by acquiring other restaurant chains.
• E)All of these answer choices are correct.

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Definitions:

Issue Securities

The process by which corporations, governments, or other entities raise capital by distributing financial instruments, including stocks and bonds, to investors.

Issues Opinions

Refers to the practice of legal bodies or officials, like courts, issuing formal judgments or explanations for their decisions on cases.

Independent Agency

An independent agency refers to a governmental body that operates outside of the direct control of the executive, legislative, or judicial branches, typically established to regulate specific activities or interests.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories, and meeting other short-term liabilities.