Business finance is needed for buying a variety of assets. Three of the following are intangible assets. Which one is the odd one out?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Factories
Option (1) Factories — Tangible asset. A tangible asset has a physical form that can be seen and touched. Factories, like machinery and buildings, are tangible assets.
Option (2) Trademarks — Intangible asset. A trademark is a name or symbol that marks a firm’s goods. It has value but no physical form.
Option (3) Patents — Intangible asset. A patent is the sole legal right to use an invention. It is a right that cannot be touched.
Option (4) Technical expertise — Intangible asset. Technical expertise is the special know-how of a firm and its people. It is knowledge, so it has no physical form.
NCERT (2026-27 Edition): “Meaning of Business Finance Money required for carrying out business activities is called business finance. Almost all business activities require some finance. Finance is needed to establish a business, to run it, to modernise it, to expand, or diversify it. It is required for buying a variety of assets, which may be tangible like machinery, factories, buildings, offices; or intangible such as trademarks, patents, technical expertise, etc. Also, finance is central to running the day-to-day operations of business, like buying material, paying bills, salaries, collecting cash from customers, etc. needed at every stage in the life of a business entity. Availability of adequate finance is, thus, very crucial for the survival and growth of a business.” |