Goodwill refers to the excess of purchase price of a business over the fair value of its net assets.

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Goodwill is the amount by which the purchase price of a business exceeds the fair value of its net assets. It represents the value of intangible assets such as reputation, brand recognition, customer loyalty, and other non-physical assets that contribute to the profitability and growth of the business.

Goodwill Refers to the Excess of Purchase Price of a Business