QUESTION ONE

Investments can be made in both real assets and financial assets. Distinguish the two assets categories. Discuss the significance of financial asset investments.

(15 marks)

Describe the following assets and categorise them into real or financial assets giving reasons for such classification: patents, copyrights, lease payments, lease obligations, customer goodwill, a university education, a K100 note, a K1 coin, a share of Larfarge Chilanga Cement, and a bank fixed deposit. (10 marks)