Question

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Answer 1

Answer:

Despite the various definitions, goodwill must feature the following:

Be an intangible asset which cannot be seen;

It cannot be separated from the business like a physical asset can;

Its value is not relative to any investment amounts or costs;

This value is subjective and depends on the person (customer) judging it; and

It is subject to wild and unpredictable fluctuations in response to externalities.

If anything falls outside of these categories, then it cannot be said to be true goodwill. Additionally, it cannot be transferred—goodwill forms a core part of the business which cannot separate and can only move with the company in question.

A business asset is anything your business owns or has control over, such as a tangible computer or an intangible invoice which is currently awaiting payment.

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Answer 2

hi mate here is your answer.....✌️☺️☺️☺️☺️

GOODWILL can be classified into two categories :-

1. PURCHASED GOODWILL :-

purchase Goodwill is the Goodwill which is acquired by making a payment . for e.g. when a business is purchased , the excess of purchase consideration over it's net worth ( assets - liabilities ) is referred to as purchased goodwill .

2 .SELF GENERATED GOODWILL:-

it is internally generated goodwill which arises from a number of characteristics or attributes which an on going business possesses. a true cost can't be placed on this type of goodwill.

FACTORS OF GOODWILL ARE:-

1. efficiency of management

2. the longevity of the business

3. nature of goods

4. possession of licence

5. monopolistic and other rights

6 . future competition.

☺️☺️☺️may be helpful ✌️✌️