What is goodwill? What are the features of goodwill?
Answers
"Goodwill is nothing more than the probability that the old customer will resort to the old place."
FEATURE OF GODWILL
= It is an intangible assets
= It does not have an existence separate from that of an enterprise. Thus, it has realisable value when business is sold
= The value of goodwill is the subjective assessment of the valuer
= It helps in earning higher profit
= It is an attractive force which brings in customers to old place of business
= It comes into existence due to various factor such as locational advantages, favourable contracts, trademarks, patents, market reputation,etc.
Answer:
Goodwill is an intangible asset associated with the purchase of one company by another. ... The value of a company's brand name, solid customer base, good customer relations, good employee relations, and any patents or proprietary technology represent some examples of goodwill.
Explanation: