Which of the following characteristics do intangible assets possess?

a. Physical existence.
b. Claim to a specific amount of cash in the future.
c. Long-lived.
d. Held for resale.

Answer: c. Long-lived.

Business

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The term capitalize means to record in an asset account.

a. true b. false

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Why does the government carefully monitor horizontal mergers?

(A) Employee layoffs usually result. (B) The new firm may discontinue some of the original firms' products. (C) It's possible for control to shift to a foreign-owned corporation. (D) The resulting single firm might gain monopoly power in its market.

Business