20140122

goodwill


 
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TERM OF THE DAY

goodwill

Assumed value of the attractive force that generates sales revenue in abusiness, and adds value to its assets. Goodwill is an intangible but saleableasset, almost indestructible except by indiscretion. It is built painstakingly over the years generally with (1) heavy and continuous expenditure in promotion, (2) creation and maintenance of durable customer and supplier relationships, (3)high quality of goods and services, and (4) high quality and conduct ofmanagement and employees. Goodwill includes the worth of corporate identity, and is enhanced by corporate image and a proper location. Its value is not recognized in account books but is realized when the business is sold, and is reflected in the firm's selling price by the amount in ...
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Usage Example
The coffee shop was able to generate goodwill by purchasing products from eco-friendly suppliers, and in turn attracted many environmentally-conscious customers.
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