One indicator of the value of a firm's intangible resources is the difference between its market capitalization and the fair value of its tangible assets.

Question

Quizplus · Accepted Answer

The difference between market capitalization and the fair value of tangible assets is often referred to as "intangible value." This reflects the extent to which investors and the market recognize and place value on a firm's intangible resources, such as brand reputation, intellectual property, and human capital. Therefore, this difference can be used as an indicator of the value of a firm's intangible resources.

One Indicator of the Value of a Firm's Intangible Resources