The benefit and advantage of the good name, reputation and correction of a business with its customers, suppliers, and distributors”. It is often referred to as the attractive force, which brings in custom.

Goodwill as the subject of proprietary rights cannot exist by itself. It has no independent existence apart from the business to which it is attached. In an acquisition, goodwill appears on the balance sheet of the acquirer in the amount by which the purchase price exceeds the net tangible assets of the acquired company. The most obvious form of goodwill is seen as the name, sign or trade marks under which a business trades and by which it is recognized in the market place.

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