A cosmetics company owns a patent for a particular kind of shampoo, which is a bestseller in the market. It enables the firm to extract a high level of discretion over product pricing. The patent for the shampoo is an example of a firm's _____ resource.
A) tangible
B) human
C) natural
D) intangible

Question

Quizplus · Accepted Answer

The patent for the shampoo is an example of an intangible resource because it is a legal right that the company has to prevent others from using the same formula, which adds value to the company and gives it a competitive advantage in the market.

A Cosmetics Company Owns a Patent for a Particular Kind