The intangible asset goodwill:

Question

Quizplus · Accepted Answer

Goodwill typically arises when one company purchases another company for a price that is greater than the fair value of the acquired company's net assets. It is an intangible asset that represents the value of the acquired company's reputation, customer base, brand, and other factors that contribute to its value beyond its tangible assets. While management may consider the value of goodwill to the company, it is ultimately determined by the purchase price paid by the acquiring company. Option A and C are not accurate descriptions of goodwill.

The Intangible Asset Goodwill