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 also: sale
Permanent link to this page: http://www.diclib.com/cgi-bin/d1.cgi?l=en&base=en_law&page=showid&id=1015
Michael Gorbachev, 27 Russian Federation, Ulyanovsk
Native language: Russian
Foreign language: English, Japanese
Hello everyone, my name is Michael and Im from Russia. Im a freelancer who specializing in motion design and animation. I would like to practise my english and in return I can teach you russian or we can just become good friends =).