Answer:
is the difference between the purchase price of a business and the book value of the net assets.
Explanation:
Goodwill comes about when an individual or a firm wants to acquire another business as a going concern. The acquiring entity usually pays more than the book value of the firm it is purchasing. The difference between the purchasing rate and the net worth of a firm is the goodwill.
Goodwill is an intangible asset. It covers benefits like a good reputation, existing customer base, ideal location, and trained staff that the acquiring entity will inherit from the previous owner.
