Meredith recently bought a business. But she paid more for the business than the total of its current and fixed assets. What did she pay extra for?
A) Land the company owns
B) Equipment in the company's factory
C) Goodwill
D) The franchise fee
E) Accounts receivable that are on the company's books

Question

Quizplus · Accepted Answer

Goodwill is the intangible value of a business that is not represented by its assets. It includes factors such as the business's reputation, customer base, and brand image. If Meredith paid more for the business than the total of its assets, she likely paid extra for the goodwill associated with the business.

Meredith Recently Bought a Business