Management Notes

Reference Notes for Management

Compared to tangible resources, intangible resources are 

Compared to tangible resources, intangible resources are

A. less visible; more difficult to copy.
B. less visible; less difficult to copy.
C. more visible; more difficult to copy.
D. more visible; less difficult to copy.

The Correct Answer Is:

  • A. less visible; more difficult to copy.

Compared to tangible resources, intangible resources are correctly described by option A, “less visible; more difficult to copy.” This answer is accurate because it reflects the fundamental characteristics of intangible resources and how they differ from tangible resources. To provide a comprehensive explanation, let’s break down why option A is correct and discuss why the other options are not accurate.

Option A: “less visible; more difficult to copy.”

This choice is correct because it captures the essence of intangible resources. Intangible resources, such as intellectual property, brand reputation, knowledge, and organizational culture, are typically less visible or physically observable than tangible resources like machinery, buildings, or inventory.

Intangible resources are often embedded within the people, processes, and systems of an organization and are not as easily discernible at a glance. Furthermore, these resources are more challenging to copy or imitate. Intellectual property, for example, is protected by patents, copyrights, and trademarks, making it legally difficult for others to replicate.

Similarly, knowledge and organizational culture are built over time and are not easily duplicated by competitors. This is why option A is the correct choice.

Option B: “less visible; less difficult to copy.”

Option B is not the correct answer because it correctly identifies intangible resources as less visible, but it inaccurately suggests that they are less difficult to copy. In reality, intangible resources are often more challenging to copy than tangible resources.

Intellectual property and brand reputation, which are common types of intangible resources, are highly protected by legal means and can be quite difficult for competitors to replicate. While they may not be as physically visible, their inherent value and the barriers to imitation make them challenging to copy.

Option C: “more visible; more difficult to copy.”

Option C is not the correct answer because it inaccurately suggests that intangible resources are more visible. In fact, intangible resources are typically less visible compared to tangible resources. The visibility of tangible resources, such as machinery or real estate, is quite apparent, as they can be seen and touched.

Intangible resources, on the other hand, are often hidden within an organization’s processes, knowledge base, or brand reputation, making them less visible to external observers. Additionally, option C incorrectly implies that intangible resources are more difficult to copy, which is not the case. In reality, intangible resources are generally more challenging to copy compared to tangible resources.

Option D: “more visible; less difficult to copy.”

Option D is not the correct answer because it presents an inaccurate description of intangible resources. As mentioned earlier, intangible resources are generally less visible than tangible resources. Furthermore, it incorrectly suggests that intangible resources are less difficult to copy, which is not true.

Intangible resources, like intellectual property and brand reputation, are often protected by various legal and strategic means precisely because they are more difficult to copy. Competitors may attempt to replicate tangible assets, like machinery, more easily than they can replicate the unique knowledge or brand equity that comes with intangible resources.

In summary, option A, “less visible; more difficult to copy,” is the correct choice when comparing intangible and tangible resources. Intangible resources are less visible because they are often hidden within the organization and not as physically observable.

They are more difficult to copy due to legal protections and the complexities of replicating intellectual property, knowledge, and brand reputation. The other options are not accurate because they either misrepresent the visibility or the ease of copying intangible resources compared to tangible resources.

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