Which is NOT a characteristic of intangible assets?

Intangible assets are defined primarily by their lack of physical substance, meaning they cannot be touched or physically handled. This is a key characteristic that differentiates them from tangible assets, which are physical items such as machinery or inventory.

The correct answer highlights that intangible assets are, by definition, not tangible in nature. This reinforces the understanding that items such as patents, trademarks, and goodwill fall into the category of intangible assets because they derive their value from intellectual property and legal rights rather than physical form. This aligns with the nature of intangible assets that are often associated with concepts and rights, which cannot be physically measured or touched.

In contrast, options that indicate characteristics of intangible assets, such as their emergence from intellectual efforts and their inclusion of software and trademarks, support the understanding of what intangible assets are and their role in a business context. This confirms that while they may provide substantial value, they do not possess a physical presence that can be measured or observed like tangible assets.