goodwill


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goodwill

n. the benefit of a business having a good reputation under its name and regular patronage. Goodwill is not tangible like equipment, right to lease the premises, or inventory of goods. It becomes important when a business is sold, since there can be an allocation in the sales price for the value of the goodwill, which is always a subjective estimate. Included in goodwill upon sale may be the right to do business without competition by the seller in the area and/or for a specified period of time. Sellers like the allocation to goodwill to be high since it is not subject to capital gains tax, while buyers prefer it to be low, because it cannot be depreciated for tax purposes like tangible assets. Goodwill also may be overestimated by a proud seller and believed by an unknowing buyer. (See: sale)

goodwill

noun altruism, amity, benefaction, benevolence, brotherhood, charity, cheerful consent, cheerful willingness, commercial advantage, cordiality, countenance, customer approval, customer encourageeent, earnestness, established patronage, established popplarity, established reputation, favor, favorable disposition, favorable regard, friendly disposition, geniality, good name, good nature, good reputation, helpfulness, humanity, known name, munificence, patronage, philanthropy, proven name, public favor, public support, sponsorship, support, sympathy, tolerance, willingness
Associated concepts: impairment of good will, sale and transfer of good will

goodwill

the advantage or benefit that is acquired by the business beyond the mere value of its capital stock or property in consequence of the patronage it receives from its customers. For example, it is usual for a business to be sold on the basis of so much for the stock and so much for the goodwill. Goodwill can also be considered as the amount by which the value of the business as a whole exceeds the assets minus the value of the company's liabilities. In another sense, it is ‘the probability that the old customers will resort to the old place’.
References in classic literature ?
With an alacrity beyond the common impulse of a spirit which yet was never indifferent to the credit of doing every thing well and attentively, with the real goodwill of a mind delighted with its own ideas, did she then do all the honours of the meal, and help and recommend the minced chicken and scalloped oysters, with an urgency which she knew would be acceptable to the early hours and civil scruples of their guests.
Left groping in darkness, with his prop utterly gone, Silas had inevitably a sense, though a dull and half-despairing one, that if any help came to him it must come from without; and there was a slight stirring of expectation at the sight of his fellow-men, a faint consciousness of dependence on their goodwill.
He has only to take care that they do not get hold of too much power and too much authority, and then with his own forces, and with their goodwill, he can easily keep down the more powerful of them, so as to remain entirely master in the country.
Only don't set your heart too strongly on the goodwill you are to get in consequence.
With all sincerity and goodwill he addressed them thus:--
Fanny thought it a bold measure, but offered no further resistance; and they went together into the breakfast-room, where Edmund prepared her paper, and ruled her lines with all the goodwill that her brother could himself have felt, and probably with somewhat more exactness.
Though his looks did not please her, his name was a passport to her goodwill, and she thought with sincere compassion of his approaching disappointment; for, in spite of what she had believed herself to overhear in the pump-room, his behaviour was so incompatible with a knowledge of Isabella's engagement that she could not, upon reflection, imagine him aware of it.
Little, narrow streets; dirty children blockading them; greasy, slovenly women capturing and spanking them; filthy dens on first floors, with rag stores in them (the heaviest business in the Faubourg is the chiffonier's); other filthy dens where whole suits of second and third-hand clothing are sold at prices that would ruin any proprietor who did not steal his stock; still other filthy dens where they sold groceries--sold them by the half-pennyworth--five dollars would buy the man out, goodwill and all.
And this was no matter-of-course question, for I never told him that I had a mother: he must have learned the fact from others, if he knew it at all; and, besides, there was sincere goodwill, and even deep, touching, unobtrusive sympathy in the tone and manner of the inquiry.
It is of vast importance to the interests of this country that we secure his goodwill.
Jessie, smiling back at him with a heart full of motherly goodwill.
They, too, in time reached Northumbria; so, side by side, Roman and Celt spoke the message of peace on earth, goodwill toward men.