Is there such a concept as “good will” in reality and is it transferable? Why or why not? Give an example.
Goodwill is considered an intangible assets. It is the value of the business in excess of the price for the assets and accounts receivables. When a business is purchased with the price in excess of the value of the assets and the value of the accounts receivable then this overage is considered as purchasing the goodwill of the company. This goodwill includes the relationship the company has with the community, its customers, and its stakeholders. Goodwill includes the position of that company in the marketplace, customer loyalty, excess business earnings, and the continued expected future economic benefits of the business. Goodwill is the day to day performance of the business operations that make it successful. Goodwill can be transferable if the new owners continue to follow the same path as the previous owners and in making changes they always look to the effect on the community, its customers, and its stakeholders and not only look at how to increase profits at others expense.
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