Goodwill is an intangible asset that arises when a buyer acquires an existing business. Goodwill does not include any assets that are easily identifiable or are capable of being transferred or sold from the entity. Goodwill is recorded when a company purchases another company and the price is greater than the fair market value less than the liabilities assumed.
Outside of accounting, goodwill refers to the value that has developed as a result of outstanding customer service, management skills, teamwork and other intangible qualities.
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