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N the knowledge economy, if a large portion of company value is in intellectual and human assets, the difference between the market value and book value of the company should ________ a company with mostly physical and financial assets.

Sagot :

It will be expected that the difference between a company's market value and book value should be larger than a company with mostly physical and financial assets if the large portion of company value is in intellectual and human assets.

What is an intellectual/human assets?

These are asset possessed by a firm that ranges from human capital, information capital, brand awareness, instructional capital etc.

These are assets that can be improved when a firm hires better employees, conduct training programs, develops new patents etc

In conclusion, since the large portion of company value is in intellectual and human assets, then, the market/book value would be larger than a company with mostly physical/financial assets.

Read more about assets

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