In financial accounting, brands are considered intangible assets. Which of the following entities can legally own brands?

• A. Only government agencies
• B. Only individuals
• C. Corporations
• D. Non-profit organizations cannot own brands

Answer: (C)

Verified step by step guidance

1. Understand the concept of intangible assets: Intangible assets are non-physical assets that have value, such as patents, trademarks, copyrights, and brands. Brands are considered intangible assets because they represent the reputation and identity of a business.
2. Recognize the legal ownership of brands: Brands can be owned by various entities, including corporations, individuals, government agencies, and non-profit organizations, as long as they have the legal rights to the brand.
3. Clarify the role of corporations: Corporations are legal entities that can own brands. They often register trademarks and invest in building brand value to enhance their business operations.
4. Address the misconception about non-profit organizations: Non-profit organizations can legally own brands. For example, charities and educational institutions often develop and protect their brands to promote their missions and activities.
5. Conclude the correct answer: The statement 'Non-profit organizations cannot own brands' is incorrect. Brands can be owned by corporations, individuals, government agencies, and non-profit organizations, provided they meet legal requirements for ownership.