The Rent Review Specialist
Asset
Asset Management
An asset is something, a quality, or a person, of use or value.
An asset is something owned by a person or business that is regarded as having value. An asset can appreciate (go up in value), or it can depreciate (go down in value). An asset will have three values: intrinsic value, scrap value, and artificial value.
Intrinsic value is the price/cost of the materials and workmanship for making of the asset. Scrap value is the value of whatever the asset is made of.
Artificial value is how much someone would be willing to pay, regardless of the intrinsic or scrap values. How much more or less would depend upon supply and demand. Generally, the supply of assets that would attract artificial value is limited and often scarcity maintains an artificial value.
Value itself is generally a matter of opinion, what the market would bear, and the nature of the transaction.
An asset is something owned by a person or business that is regarded as having value. An asset can appreciate (go up in value), or it can depreciate (go down in value). An asset will have three values: intrinsic value, scrap value, and artificial value.
Intrinsic value is the price/cost of the materials and workmanship for making of the asset. Scrap value is the value of whatever the asset is made of.
Artificial value is how much someone would be willing to pay, regardless of the intrinsic or scrap values. How much more or less would depend upon supply and demand. Generally, the supply of assets that would attract artificial value is limited and often scarcity maintains an artificial value.
Value itself is generally a matter of opinion, what the market would bear, and the nature of the transaction.