When a firm has a positive reputation, it is an asset that increases the value of an organization when it is sold. It falls into the category of goodwill.

Question

Quizplus · Accepted Answer

Goodwill is defined as the intangible assets of a company, including brand recognition, customer loyalty, and reputation. A positive reputation is an essential element of goodwill and can increase the overall value of a company when it is sold.

When a Firm Has a Positive Reputation, It Is an Asset