44. What is the difference between tangible and intangible property?

A major source of revenue is the property tax — a tax on real property and tangible or intangible personal property. Real property includes land, buildings, fixtures and anything else permanently attached to them. Frequently real property is called real estate. Tangible property is all tangible items of wealth not permanently attached to land or buildings, such as furniture, automobiles, tools, equipment, the stock of goods in retail stores and clothing. Intangible personal property includes stocks, bonds, mortgages, copyright, trademarks, patents, intellectual property rights, goodwill and bank accounts.

Some property, despite being physical in nature, is classified in many legal systems as intangible property because the rights associated with the physical items have greater significance than the physical properties.

For example, the owner of a copyright can control the printing of books, but the book itself is personal property which can be bought and sold without concern over the rights of the copyright holder.

45. What is a tax assessor?

A tax assessor is a specialist who calculates the value of property. The main problems assessor faces with are: 1) many items are not always brought to his attention, that’s why a lot of things that should be taxed never are; 2) some property is very hard to evaluate fairly. The value calculated by the assessor is then used as the basis for determining the amounts to be paid for tax purposes.

The property tax — a tax on real property and tangible or intangible personal property. Real property or real estate includes land, buildings, fixtures and anything else permanently attached to them. Tangible property is all tangible items of wealth not permanently attached to land or buildings, such as furniture, automobiles, tools, equipment, the stock of goods in retail stores and clothing. Intangible personal property includes stocks, bonds, mortgages, copyright, trademarks, patents, intellectual property rights, goodwill and bank accounts.

46. What is the main purpose of a business organization?

One of the major economic institutions is the business organization that serves as the main link between scarce resources and consumer satisfaction. These businesses compete with one another for the chance to satisfy people’s wants.

The main purpose of a business organization is earning a profit. If its activity is not successful it suffers losses.

There are three major kinds of business organizations: the sole proprietorship, the partnership and the corporation.

The most common form of business organization is the sole proprietorship — a business owned and run by one person. A partnership is a business that is jointly owned by two or more people who have combined their talents and resources for the purpose of earning a profit. As corporations are the most powerful form of doing of business, they may attract a large amount of capital and can invest it in plants, equipment and research.