Service potential definition
/What is Service Potential?
Service potential is the expected benefit from an asset. This benefit can come from holding and later selling the asset, or by using the asset. Service potential is a major consideration when deciding whether to invest in a new asset. The concept is most frequently applied to intangible assets, such as copyrights, trademarks, and licenses. The value of intangible assets is primarily derived from the service they can provide over an extended period of time, rather than from any gains that may be realized from their eventual sale.
A concern is whether an asset will actually be used in the manner originally contemplated when the service potential figure was first derived. If not, the actual service realized may differ significantly from its service potential.