Certified Professional Contract Manager (CPCM) Practice Exam

An example of an intangible asset is a trademark. Intangible assets are non-physical assets that provide value to a company and are rooted in legal rights or competitive advantages. A trademark represents a brand's identity and can include logos, names, or symbols that distinguish goods or services in the marketplace.

Trademarks can offer significant value by enhancing brand recognition and customer loyalty, contributing to a company's overall market position. Unlike tangible assets such as cash, inventory, or land, trademarks do not have a physical form, making them distinct in the classification of a company's assets.

Other choices such as cash, inventory, and land are considered tangible assets. Cash is a liquid asset, easily used or converted into goods or services. Inventory refers to goods available for sale or production, and land is a physical piece of property showing physical attributes and is part of a company's real estate. These tangible assets contrast sharply with the conceptual and legal nature of a trademark.