Question

the Goodwill of a business exists if it earns

Answer 1

Hi mate

Yes you are absolutely right because if there is no good will we cannot earn.

Answer 2

In accounting, the monetary value of such an advantage (of having a good reputation which results in higher profits) is referred to as “Goodwill”. Goodwill is the value of extra profits expected by a firm in future over and above the normal profits (profit earned by a normal firm i.e, a firm without any goodwill).