What is an Asset?
Definition
An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefits. It can be tangible (physical) or intangible (non-physical).
Types of Assets
**Tangible Assets:** * Cash * Inventory * Land * Buildings * Equipment **Intangible Assets:** * Goodwill * Intellectual property (patents, trademarks) * Brand recognition
Importance of Assets
Assets are crucial for any organization as they: * Generate income * Increase profitability * Provide financial security * Improve creditworthiness
Management of Assets
Effective asset management involves: * Acquiring assets at a reasonable price * Maintaining and upgrading assets * Disposing of assets when necessary
Examples of Assets
* A business's inventory of products for sale * A company's patent for a new technology * A homeowner's land and house * A government's gold reserves
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