ITM 407 Study Guide - Disclose
15 Apr 2012
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Document Summary
Describe the three types of intangible assets: individual competence, internal structures and external structures. Individual competence: is people"s ability to act in various situations. It includes skill, education, experience, values and social skills. Competence cannot be owned by anyone or anything but the person who possesses them, because when all is said and done employees are voluntary members of the organization. A case can, however, be made for including competence in the balance sheet, because it is impossible to conceive of an organization without people. People tend to be loyal, if they are treated fairly and feel a sense of shared responsibility. That is why companies are generally willing to pay some kind of compensation to those who retire, or have to be laid off. Internal structures: consists of patents, concepts, models, and computer and administrative systems. These are created by the employees and are thus generally owned by the organization, and adhere to it.
