First, owning them requires capital and/or taking on debt.
Second, they must be maintained and repaired.
Third, they take up space and space too can be costly.
If you can structure deals with business partners where they hold and maintain the physical assets of the shared enterprise (inventories, for example) then your business will use its capital resources for other opportunities.
differentiate between physical assets from physical liabilities
Physical assets are tangible things a business or person owns, e.g. property.
Physical assets are plant, machinery, tools, land, building e.t.c where as financial assets include cash, shares, bonds, marketable securites, financial assets are used to purchase Physical asstes.
Real assets are physical assets such as plant, machinary, vehicles, stock/ inventory. Financial assets, are cash, bonds, shares etc., etc.
Advantages of corporation include protected assets and heightened credibility. Disadvantages include loss of a personal touch, and ongoing expenses.
differentiate between physical assets from physical liabilities
fafa
Tangible Assets: These are those assets which have physical existence and which can be seen by naked eyes or has feeling. Intangible Assets: These are reverse from tangible assets as these have no physical existence and nobody can see them with eyes.
Physical assets are tangible things a business or person owns, e.g. property.
Physical assets are plant, machinery, tools, land, building e.t.c where as financial assets include cash, shares, bonds, marketable securites, financial assets are used to purchase Physical asstes.
They are financial assets because they are non-physical assets
We can feel tangible asset,where as we cannot feel intangible asset
There are many advantages of organizing as it relates to physical assets. This allows for easier monitoring and accounting for the assets among other advantages.
advantages of assets:- 1)old assets sales profits 2)that's not working old assets that's way sale 3)more profit and deprecation less disadvantages of assets 1)old is gold that's way loss 2) less profit and 3)selling the old loss of industries
patents are intangible assets as these have not physical existence. patent is a right to use something which is not physical that's why it is an intangible asset.
A physical asset is something tangible that is owned such as equipment, cash, and inventory. Financial assets refer to things such as stocks and bonds, which have value but are not tangible.
One of the advantages of fixed assets are that over the period of the fixed asset, the total burden of depreciation and repair costs are disproportional over the effective life of the asset. One of the disadvantages is that the depreciation is not a suitable method for assets like plants and machinery as depreciation is constant while the repairs on such assets will be heavier in later years.