If the firm owns any trademarks, patents, or copyrights, or has built up a positive reputation with customers and suppliers, the business has what is / are called:

A. Capital
B. Intangible assets
C. Market potential
D. Tangible assets

B. Intangible assets

Explanation:

Intangible assets are assets that are not of any physical nature. Examples are goodwill, brand recognition and intellectual property.

Intangible assets created by a company does not appear on the balance sheet.

Types of intangible assets, namely;

A company's brand name is considered an indefinite intangible asset because it stays with the company for as long as it continues operations.

An example of a definite intangible asset would be a legal agreement to operate under another company's patent, such that your company has the right to use for a particular period of time.

B. Intangible assets

Explanation: Usually hard to evaluate and lacking physical substance, intangible assets are defined as those assets that are not physical in nature. Examples include: goodwill, trademarks, patents, copyright, franchises, goodwill, trade names etc. While a company can create or acquire intangible assets, they are however not recorded in the balance sheet and have no book value. Intangible asset can also be considered or viewed as indefinite (E.g. Trademark) or definite (E.g. legal agreement or contract).

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