Explain the term Goodwill
Explain the term Goodwill with espect to intangible asset?
Expert
Goodwill is an intangible asset that makes any organization with his good name, by selling quality product, by selling product at lesser price.
Goodwill can also be earned by speaking sweat words to customer. The expert can tell regarding the accurate value of Goodwill however in general IT is the surplus of super profit over general profit.
Or when any concern is gaining more gain than his general rate of return then it means this is making Goodwill.
Goodwill can’t make within night however for generating goodwill any firm can take 10-20 years that is termed as long period and is appropriate for making goodwill.
When you are selling your old firm, you can too demand the value of goodwill with total cost of your asset, whenever you think that Firm or company name is saleable in market.
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