What best defines "intangible" in an economic context?

In an economic context, "intangible" is best defined as something that is unable to be touched or grasped. This term typically refers to assets that do not have a physical presence but still hold significant value for an organization. Intangible assets include things like intellectual property (patents, trademarks, copyrights), goodwill, brand recognition, and customer relationships. They represent potential future economic benefits but cannot be physically handled or measured as tangible assets can.

The concept of intangibility highlights the importance of non-physical assets in the modern economy, where many businesses derive significant value from their brands and intellectual properties rather than just their physical goods. Understanding this distinction is vital for business education, as it affects financial reporting, valuation, and strategic management decisions within a company.