What is an asset?

An asset is defined as a resource owned by a business that has economic value. This means that assets are tangible or intangible items that can provide future economic benefits to the company. For example, cash, inventory, equipment, and real estate are all types of assets that contribute to the overall financial health of a business. The essential characteristic of an asset is that it can be used to generate revenue or provide economic advantages in the future, thus impacting the company's profitability and financial position positively.

Understanding why the other options do not define an asset is important as well. A debt obligation refers to a liability, which indicates what the company owes rather than what it owns. A legal obligation of a company also pertains to liabilities, as it indicates the responsibilities and debts that a business is required to fulfill. Lastly, a type of capital investment is a broader term that may describe how funds are allocated within a company, but it does not directly define what an asset is. Thus, the correct choice highlights the ownership and the economic value aspect inherent in the definition of an asset.