Goodwill is the value attributable to a business's ability to generate a high return.

Question

Quizplus · Accepted Answer

Goodwill is the intangible value of a business that arises from its reputation, customer loyalty, brand recognition, and other non-physical assets. It represents the difference between the fair market value of a company and the total value of its tangible assets. Goodwill can result in a business having a competitive advantage, which translates to a higher return on investment. Therefore, the statement "Goodwill is the value attributable to a business's ability to generate a high return" is true.

Goodwill Is the Value Attributable to a Business's Ability to Generate