1. Asset Valuation: They are a significant part of a company's balance sheet and contribute to the overall valuation of the business. 2. Operational Efficiency: Physical assets like machinery and equipment are necessary for manufacturing and other operational processes. 3. Insurance Coverage: Tangibles need to be insured to protect the business from potential losses due to damage or theft. 4. Depreciation: Tangibles are subject to depreciation, which has implications for taxation and financial reporting.