17 100 points value The MegaHit Film Studio has a licensing

17. 100 points value The MegaHit Film Studio has a licensing right (or agreement) to distribute films produced by the Artsy Film Company. How would the MegaHit Company clossify this licensing right? O Tangible asset O Research and development O Intangible asset O Fixed asset

Solution

The correct answer is:

Option 3rd: Mega Hit Company should classify Licencing Rights as \"Intangible Assets\"

Intangible assets are assets that dont hhave physical attributes, like Goodwill, patents, Trademarks, Licencing Rights.

It cannot classify Licencing rights as:
---tangible assets, because this asset has no physical characteristics.
---research & development, because this is not research and evelopment.
---Fixed assets, because these fixed assets are physical in nature and are immovable like Equipments, etc.