Goodwill

Goodwill is a capital intangible asset and is the amount by which the price paid for a company exceeds the fair market value of the company’s net assets (assets – liabilities). Goodwill means the company has other useful ‘assets’ that cannot be measured on the Balance sheet, and they include superior senior management, skilled people, brand names such as Coca Cola, excellent business locations/head office location, superior quality products & services, good customer & public relations, etc.

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