GOODWILL Meaning and
Definition
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Goodwill is a term used in business and accounting, referring to the intangible value of a company's reputation, brand, customer loyalty, and other intangible assets that contribute to its commercial success and future earnings potential. It represents the positive and favorable reputation a company has earned through its quality products or services, customer relationships, integrity, and overall market standing.
In financial terms, goodwill is usually calculated as the difference between the purchase price of a company in an acquisition and the value of its net tangible assets at the time of purchase. It is recorded on the balance sheet as an intangible asset and is subject to periodic assessment for impairment.
Goodwill is often built over time through consistent delivery of excellent products or services, strong customer support, effective marketing, and innovative strategies. It enhances a company's competitive advantage, as it fosters trust and loyalty, increases customer retention, and potentially attracts new customers.
The value of goodwill is difficult to quantify, as it relies on subjective factors such as brand recognition, customer perception, and long-term relationships. However, goodwill plays a crucial role in determining a company's overall value, as it contributes to its future cash flows and business longevity.
While goodwill is typically associated with financial and business contexts, it can also be applicable to personal relationships, where it denotes a disposition of kindness, trust, and benevolence towards others. In essence, goodwill represents the positive and beneficial qualities that enhance an individual's or a company's standing and reputation.
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Kind feeling; favour; the benefit of a business in full operation, for which a price may be paid.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Top Common Misspellings for GOODWILL *
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Other Common Misspellings for GOODWILL
Etymology of GOODWILL
The word "goodwill" is a compound word that originated from the Old English language. It combines the words "good" and "will".
1. The word "good" comes from the Old English word "gōd", which can be traced back to the Germanic language. It originally meant "virtuous", "moral", or "worthy", and is related to similar words in other Germanic languages.
2. The word "will" comes from the Old English word "willan", which means "to wish" or "to desire". It also derives from the Germanic language.
The combination of these two words, "good" and "will", resulted in the formation of the compound word "goodwill". Over time, "goodwill" came to be associated with kindness, generosity, and benevolence towards others.
Similar spelling words for GOODWILL
- good will,
- goat willow,
- goodall,
- goodly,
- godly,
- goodell,
- Godel,
- good deal,
- godley,
- goodale,
- Goodlow,
- goodloe.
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