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A trademark is an intangible asset that has value to a business.
1) Assume that you are an accountant with the responsibility of valuing the trademark of a well-known company such as Nike or McDonald’s. Nike was known for the “swoosh” sign and had famous celebrities represent their product. McDonald’s is famous for its “arch”. Find a company other than Nike and McDonald’s.
2) What makes each of these companies unique and adds value?
3) While the value of a trademark may not necessarily be recorded on the company’s balance sheet.
4) Discuss what factors you think would affect (increase or decrease) the value of the company’s trademark? Consider your answer from the perspective of various stakeholders. For example, Tiger Woods was pulled out of Nike after his scandalous accident/affair because Nike did not want to tarnish their image (wholesome).
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