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How is "Goodwill" defined in the context of business?
  • a)
    The actual value of a business
  • b)
    The value of tangible assets in a business
  • c)
    The difference between tangible assets and liabilities
  • d)
    The difference between the value of the business and its tangible assets
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
How is "Goodwill" defined in the context of business?a)The actual valu...
In the context of business, "Goodwill" refers to the difference between the value of the business (including intangible assets like reputation and customer loyalty) and its tangible assets. It represents the intangible value that someone is willing to pay for the business beyond its physical assets.
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How is "Goodwill" defined in the context of business?a)The actual value of a businessb)The value of tangible assets in a businessc)The difference between tangible assets and liabilitiesd)The difference between the value of the business and its tangible assetsCorrect answer is option 'D'. Can you explain this answer?
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