Answer to Question #317323 in Management for king

Question

Resources are productive assets owned by an organisation. They can either be tangible or intangible.

Discuss the concept of resources.

a) Your discussion should differentiate between tangible and intangible resources. Use the case study to provide examples for each.

b) Indicate whether you regard examples of resources provided in a) as a strength or a weakness and give reasons for your answer.

Answer 1

a) Tangible assets are physical; they include cash, inventory, vehicles, equipment, buildings, and investments. Intangible assets do not exist in physical form and include things like accounts receivable, pre-paid expenses, and patents and goodwill.

b) The tangible assets such as cash, inventory, vehicles, equipment act as both strength and in another way act as weakness since they can be converted into liquid assets easily and can be stolen respectively. Intangible assets are strength to the company.