Goodwill is the amount paid for an existing business beyond the value of its tangible assets.

Question

Quizplus · Accepted Answer

Goodwill represents the value a business has beyond its tangible assets, such as its customer base, brand reputation, intellectual property, and other intangible assets. This value is usually reflected in the purchase price paid for the business, over and above the value of its physical assets. Therefore, the statement is true.

Goodwill Is the Amount Paid for an Existing Business Beyond