MCQ Quiz on Valuation of Intangibles

MCQ Quiz on Valuation of Intangibles 
MCQ Quiz on Valuation of Intangibles

    MCQ Quiz platform provide you a MCQ on Valuation of Intangibles. This MCQ Quiz covers 45 MCQ.

    MCQ Quiz on Valuation of Intangibles is based on following multiple choice questions ( MCQ).  If you want to know the answer of following MCQs, then you should solve the MCQ Quiz on it. Which is available at the end of this post.

1) Goodwill is a type of ------------assets. 
a) Tangible 
b) Intangible 
c) Fixed 
d) None of the above

2) ----------------is the present value of a firm’s anticipating excess earning. 

a) Goodwill 
b) Copyright 
c) Patents 
d) None of the above

3) Which of the following is not intangible asset? 
a) Copyrights 
b) Stock 
c) Patents 
d) None of the above

4) How many methods used for valuation of Goodwill? 

a) 3 
b) 6 
c) 4 
d) None of the above

5) Under -----------method goodwill is determined by mutual agreement between business and its buyer. 
a) Average Profit 
b) Arbitrary Assessment 
c) Weighted Average Profit Method 
d) None of the above

MCQ Quiz on Valuation of Intangibles is below👇

6) Average Profit can be calculated by dividing total profit with---------- 

a) Number of years 
b) Periods 
c) Normal income of a year 
d) None of the above

7) In average profit goodwill can be calculated by multiplying average profit with--------- 
a) Number of profits 
b) Number of years purchases 
c) Normal income of a year
d) None of the above

8) Which of the following initial parameter used for valuation of intangible asset? 
a) Cost 
b) Market Value 
c) Replacement cost 
d) None of the above

9) Goodwill is recorded at ………… 
a) Liability side 
b) Asset side 
c) Debit side of Profit and Loss Account 
d) None of the above

10) By super profit method goodwill can calculated as ------------ 
a) Average profit * No. of years purchases 
b) Super Profit * No. of years Purchases 
c) Normal * No. of years Purchases 
d) None of the above

MCQ Quiz on Valuation of Intangibles is below👇

11) The Calculation of super profit = Average profit - ……….. 

a) Capital introduced 
b) Normal Profit 
c) Normal rate of return
d) None of the above

12) Normal profit = …………. x Normal Rate of Return 
a) Average Profit 
b) Capital Employed 
c) Super Profit 
d) None of the above

13) Under ------------method goodwill is the difference between actual capital employed and capitalised value of future profit 
a) Avg. Profit 
b) Capitalization of future profit 
c) Super Profit 
d) None of the above

14) Patents is a type of ----------------Assets 
a) Tangible Assets 
b) Intangible Assets 
c) Miscellaneous Expenses
d) None of the above

15. -------------is a thing which differentiates the product from similar feature product. 
a) Copyrights 
b) Brands 
c) Royalty 
d) None of the above

MCQ Quiz on Valuation of Intangibles is below👇

16. ------------can be defined as procedure of determining value who is willing to pay for brand. 

a) Brand Equity 
b) Brand Design 
c) Brand Valuation 
d) None of the above

17. As per ---------------method expenditure and investment is incurred for replacing and introducing new brand. 
a) Conversion Method 
b) Accumulated Method 
c) Replacement Method 
d) None of the above

18. Which of the following assumes historical cost of creation of brand as its current value? 
a) Conversion method 
b) Accumulated Cost Method 
c) Replacement Cost Method 
d) None of the above

19. As per Patents Law, patents classifieds in ------------categories. 
a) 2 
b) 4 
c) 3 
d) None of the above

20) -----------is a system through which rewarding individual creation and inventions. 
a) Copyright 
b) Goodwill 
c) Patent
d) None of the above

MCQ Quiz on Valuation of Intangibles is below👇

21) -------------patents granted for new products, machines, processes of manufacturing. 

a) Utility 
b) Design 
c) Plant 
d) None of the above

22) -------------------patents are given to for newly created ornamental article. 
a) Utility 
b) Design 
c) Plant 
d) None of the above

23) Methods of valuation of patents are----------- 
a) 3 
b) 4 
c) 2 
d) None of the above

24) ----------------consider legal right of the owner of intellectual invention. 
a) Copyright 
b) Brand 
c) Trademark 
d) None of the above

25) ------------method is based upon comparison of actual price paid for intellectual property with available alternate. 
a) Cost Method 
b) Market Method 
c) Income Method 
d) All of the above 
d) None of the above

MCQ Quiz on Valuation of Intangibles is below👇

26) ------------method focuses on income generating capability of intellectual property.
 a) Income Method 
b) Market Method 
c) Cost Method
d) None of the above

27) Which of the following is upgraded version of average profit method? 
a) Super Profit Method 
b) Normal Profit 
c) Average Profit Method 
d) None of the above

28) In ----------------method goodwill is valued by capitalising future maintainable profit applying normal rate of return. 
a) Capitalization Method 
b) Annuity Method 
c) Average Profit 
d) None of the above

29) ----------------------is a visual representation in composition of letter, logo and phrases on a product. 
a) Brand 
b) Trade Mark 
c) Patents 
d) None of the above

30) Patents, copyrights and trademarks are------------- 
a) Tangible Assets 
b) Intangible Assets 
c) Current Assets 
d) None of the above

MCQ Quiz on Valuation of Intangibles is below👇

31) If the average profit of five years of the concerns is Rs. 4,00,000 and goodwill is calculated based on three years of purchases, the value of goodwill will be ------------ 

a) 20,00,000 
b) 12,00,000 
c) 16,00,000
d) None of the above

32) Aqua Pvt Ltd., have calculated their average profit Rs.40,000 for last 5 years. Normal rate of return are to be expected at 20% and Capital employed is Rs. 1,00,000, then the amount of Normal profit will be ------------- 
a) 20,000 
b) 40,000 
c) 50,000 
d) None of the above

33) Aqua Pvt Ltd., have calculated their average profit Rs.50,000 for last 5 years. Normal rate of return are to be expected at 20% and Capital employed is Rs. 1,00,000, then the amount of Super profit will be ------------- 
a) 30,000 
b) 20,000 
c) 16,00,000 
d) None of the above

34) Super Profit = Average Profit -…………… 
a) Normal Profit 
b) Normal Rate of Return 
c) Capital Employed 
d) None of the above

35) Normal Profit = --------------X Normal Rate of Return 
a) Average Profit 
b) Super Profit 
c) Capital Employed 
d) None of the above

MCQ Quiz on Valuation of Intangibles is below👇

36) Under -------------method it is considered that much amount capital required to earn definite amount of profit at normal rate of return. 

a) Average Profit Method 
b) Super Profit Method 
c) Capitalization Method
d) None of the above

37) Goodwill = Capitalized value of future maintainable profit -…………… 
a) Normal Profit 
b) Actual Capital employed 
c) Super Profit 
d) None of the above

38) --------------facilitates product differentiation from similar category. 
a) Trade Mark 
b) Brand 
c) Company Name 
d) None of the above

39) -------------------involves a process of calculating the value of a brand. 
a) Brand Valuation 
b) Brand Recognition 
c) Brand Equity 
d) None of the above

40) Which of the following is /are requirements of good branding? 
a) Attractive 
b) Easy to recognize and pronounce 
c) Should be registered 
d) All of the above 

MCQ Quiz on Valuation of Intangibles is below👇

41) TRIPS stand for ----- 

a) Tariff Related Intellectual Property Rights 
b) Trade Related Intellectual Property Rights 
c) Trade Related International Property Rights 
d) None of the above

42) In --------------approach numerical and economic data are used to evaluate the intellectual property. 
a) Quantitative Approach 
b) Qualitative Approach 
c) Cost Based approach
d) None of the above

43) --------------approach focused on opportunities and risk associated with the intellectual property rights. 
a) Quantitative Approach 
b) Qualitative Approach 
c) Cost based approach 
d) None of the above

44) Which of the following method is/ are not used in qualitative approach in valuation of patents? 
a) Income based approach 
b) Market based approach 
c) Cost based approach 
d) All of the above 

45) In --------------method expenses incurred on advertising and brand building are considered as base for valuation of trademark. 

a) Market value method 
b) Historical cost method 
c) Income based valuation
d) None of the above

MCQ Quiz on Valuation of Intangibles is below👇








1➤ 1) Goodwill is a type of ------------assets.

2➤ 2) ----------------is the present value of a firm’s anticipating excess earning.

3➤ 3) Which of the following is not intangible asset?

4➤ 4) How many methods used for valuation of Goodwill?

5➤ 5) Under -----------method goodwill is determined by mutual agreement between business and its buyer.

6➤ 6) Average Profit can be calculated by dividing total profit with----------

7➤ 7) In average profit goodwill can be calculated by multiplying average profit with---------

8➤ 8) Which of the following initial parameter used for valuation of intangible asset?

9➤ 9) Goodwill is recorded at …………

10➤ 10) By super profit method goodwill can calculated as ------------

11➤ 11) The Calculation of super profit = Average profit - ………..

12➤ 12) Normal profit = …………. x Normal Rate of Return

13➤ 13) Under ------------method goodwill is the difference between actual capital employed and capitalised value of future profit

14➤ 14) Patents is a type of ----------------Assets

15➤ 15. -------------is a thing which differentiates the product from similar feature product.

16➤ 16. ------------can be defined as procedure of determining value who is willing to pay for brand.

17➤ 17. As per ---------------method expenditure and investment is incurred for replacing and introducing new brand.

18➤ 18. Which of the following assumes historical cost of creation of brand as its current value?

19➤ As per Patents Law, patents classifieds in ------------categories.

20➤ 20) -----------is a system through which rewarding individual creation and inventions.

21➤ 21) -------------patents granted for new products, machines, processes of manufacturing.

22➤ 22) -------------------patents are given to for newly created ornamental article.

23➤ 23) Methods of valuation of patents are-----------

24➤ 24) ----------------consider legal right of the owner of intellectual invention.

25➤ 25) ------------method is based upon comparision of actual price paid for intellectual property with available alternate.

26➤ 26) ------------method focuses on income generating capability of intellectual property

27➤ 27) Which of the following is upgraded version of average profit method?

28➤ 28) In ----------------method goodwill is valued by capitalising future maintainable profit applying normal rate of return.

29➤ 29) ----------------------is a visual representation in composition of letter, logo and phrases on a product.

30➤ 30) Patents, copyrights and trademarks are-------------

31➤ 31) If the average profit of five years of the concerns is Rs. 4,00,000 and goodwill is calculated based on three years of purchases, the value of goodwill will be ------------

32➤ 32) Aqua Pvt Ltd., have calculated their average profit Rs.40,000 for last 5 years. Normal rate of return are to be expected at 20% and Capital employed is Rs. 1,00,000, then the amount of Normal profit will be -------------

33➤ 33) Aqua Pvt Ltd., have calculated their average profit Rs.50,000 for last 5 years. Normal rate of return are to be expected at 20% and Capital employed is Rs. 1,00,000, then the amount of Super profit will be -------------

34➤ 34) Super Profit = Average Profit -……………

35➤ 35) Normal Profit = --------------X Normal Rate of Return

36➤ 36) Under -------------method it is considered that much amount capital required to earn definite amount of profit at normal rate of return.

37➤ 37) Goodwill = Capitalised value of future maintainable profit -……………

38➤ 38) --------------facilitates product differentiation from similar category.

39➤ 39) -------------------involves a process of calculating the value of a brand.

40➤ 40) Which of the following is /are requirements of good branding?

41➤ 41) TRIPS stand for -----

42➤ 42) In --------------approach numerical and economic data are used to evaluate the intellectual property.

43➤ 43) --------------approach focused on opportunities and risk associated with the intellectual property rights.

44➤ 44) Which of the following method is/ are not used in qualitative approach in valuation of patents?

45➤ 45) In --------------method expenses incurred on advertsing and brand building are considered as base for valuation of trademark.

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