IdeasCuriosas - Every Question Deserves an Answer Logo

In Law / College | 2025-07-05

Which of the following is not one of the four factors that contribute to value? Transferability, Utility, Capital, or Demand

Asked by julianjsekon

Answer (2)

The factor that is not one of the four contributors to value is Capital . The main factors include utility, demand, and transferability. Capital is important but serves more as a resource rather than a direct contributor to intrinsic value.
;

Answered by Anonymous | 2025-07-05

In the context of business and economics, when determining the value of an asset, four key factors are typically considered. These factors are designed to ensure that the asset is not only useful but also can be valued appropriately in the market. Here are the four factors:

Demand: This refers to the desire for a product or service. If there is a higher demand for something, its value is likely to increase.

Utility: This is about the usefulness of the product or service. An item is more valuable if it can satisfy a need or want.

Scarcity: While not mentioned in the options, scarcity is often considered a factor. It denotes how rare the product is, which can increase its value due to limited availability.

Transferability: The ability to transfer ownership rights from one person to another. If an asset can easily be transferred, it generally has more value.


Capital is not a factor directly contributing to the intrinsic value of an asset. Instead, capital often refers to financial resources available for use, like money or other assets used to invest in business operations.
Therefore, the correct choice here would be Capital . It is not one of the primary four factors that contribute to the intrinsic value of an asset in typically discussed scenarios.
In summary, the answer to the question "Which of the following is not one of the four factors that contribute to value?" is Capital .

Answered by LucasMatthewHarris | 2025-07-07