What are the nature of goodwill?

1.	What are the nature of goodwill?
Answer» The nature of the goodwill can be described as follows: 1. Goodwill is a tangible fixed asset. It is tangible because it has no physical existence. It cannot be seen or touched. 2. It has a definite value depending on the profitability of the business enterprise. 3. It cannot be separated from the business. 4. It helps in earning more profit and attracts more customers. 5. It can be purchased or sold only when the business is purchased or sold in full or in part.

Answer»

The nature of the goodwill can be described as follows:

1. Goodwill is a tangible fixed asset. It is tangible because it has no physical existence. It cannot be seen or touched.

2. It has a definite value depending on the profitability of the business enterprise.

3. It cannot be separated from the business.

4. It helps in earning more profit and attracts more customers.

5. It can be purchased or sold only when the business is purchased or sold in full or in part.

Discussion