Which term describes the property that can be seen or touched, including buildings and equipment?

Which term describes the property that can be seen or touched, including buildings and equipment?

• A. Technological Class of Risks
• B. Transfer
• C. Tangible Property
• D. Severity

Answer: (C)

Tangible property refers to physical assets that you can see and touch, such as buildings and equipment. In risk management, identifying tangible property helps determine which assets need protection, how to value them for insurance or loss estimation, and what controls or precautions are appropriate to reduce exposure. This concept contrasts with intangible assets like patents or goodwill, which aren’t physically observable. The other options don’t describe a type of property. A technological class of risks is a way of categorizing risks related to technology, not a description of assets. Transfer is a risk response strategy that moves risk to another party, not a label for asset types. Severity is a measure of the potential impact of a loss, not a category of property. Therefore, the term that best fits “property that can be seen or touched, including buildings and equipment” is tangible property.

Tangible property refers to physical assets that you can see and touch, such as buildings and equipment. In risk management, identifying tangible property helps determine which assets need protection, how to value them for insurance or loss estimation, and what controls or precautions are appropriate to reduce exposure. This concept contrasts with intangible assets like patents or goodwill, which aren’t physically observable.

The other options don’t describe a type of property. A technological class of risks is a way of categorizing risks related to technology, not a description of assets. Transfer is a risk response strategy that moves risk to another party, not a label for asset types. Severity is a measure of the potential impact of a loss, not a category of property. Therefore, the term that best fits “property that can be seen or touched, including buildings and equipment” is tangible property.