Business-to-business financial system Essay Example | Topics and Well Written Essays - 3000 words

Business-to-business financial system - Essay Example In this regard, there are a lot of things and probability that might come into picture, and more often than not, it is due to VALUE LOSS caused by INTANGIBILITY. However, this kind of concern doesn't seem to catch the attention of even financial experts solely on the basis that majority of them fails to go back into the basics, and that is to search for the appropriate term for the word intangible. Upton III 2007 pointed-out that "there are times where it is desirable to value intangible assets for internal business purposes, whether they are related to taxation or not. For example, determining the appropriate value of an intangible asset (or set of intangible assets) may be necessary or useful for corporate planning, establishing royalty rates, inter company transfer prices or even litigation dispute and resolution (although often this is tied into taxation related reasons).Regardless of the reason, it is necessary to value intangible assets carefully and appropriately' 'The purpose of the intangible asset valuation is often to understand not only what the intangible asset is (and does) but also how it affects the bottom line. An ethical and conscientious valuation expert will keep this in mind, and will not fall prey to the desire to value an intangible asset in a biased man'" In this case, it is very important to understand that there are instances that intangible assets particularly with that of a financial one is sometimes the culprit in value loss of a certain financial or even a business enterprise. It is clear that the more the value that a financial or a business enterprise's assets are, the more the stable the business stands. In this case, it is very important to ensure the value of a certain financial asset. Looking into a much complicated picture, defining what intangible asset might create derailment on how value loss is created by intangibility of a financial product. It is an established fact that the major component of a service product is intangible. Upon analyzing this kind of premise, it is not impossible to consider finances as an intangible asset because it is subject to inflation or deflation of a country's economy. In the case of the aforementioned argument, the place where a financial service industry could set the pace of the businesses financial standing if it is doing well or not. In this kind of consideration, it is understood that monetary standing of a financial service industry is unpredictable day after the other- it is why stock market, along with its components is monitored day after day. However, one cannot fully understand the risk and devaluation of financial service providers with regards to intangibility of monetary asset if b2b is not yet defined. Of course, this kind of system is presently penetrating several or perhaps majority of the world market today. Furthermore, the website searchcio.techtarget.com (2000) defined it as "B2B (business-to-business), also known as e-biz, is the exchange of products, services, or information between businesses rather than between businesses and consumers. Although early interest centered on the growth of retailing on the Internet (sometimes called e-tailing), forecasts are that B2B revenue will far exceed business-to-consumers (B2C) revenue in the near future. According to studies published in early 2000, the money volume of B2B exceeds that of e-tailing by 10 to 1. Over the next five years, B2B is expected to have a