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what is good will and what are the different types of good
will
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Answer Posted / md abdul aziz.
Good will is a prestige and equity premium earned by a
businessfirm from its quality service and management.The
equity premium(good will) of a business can be calculated
as G = AV/RV x 100.
where G = goodwill
AV= Assumed Value
RV= Real Value.
when, G>1 it is good will.
G<1 it is bad will.
G=1 it is break even.
Good will is an intangible asset of a business concern
expressed in accounting figure and maintained in a
prestigeios manner. Md Abdul Aziz.
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