What Is Meant By Business Goodwill? Essay example
Goodwill is the established reputation of the business. Goodwill is a saleable but intangible asset build with unaccounted efforts over the years with
# promotion which is a heavy and continuous expenditure
# by creating and maintaining relationships with customers and suppliers
# providing goods and services of good quality
# sustaining quality and conduct of management and employees .
Corporate image and proper location enhances the worth of corporate identity which falls under goodwill. Its value is realized at the time of the sale of the business, not in the account books. When the market capitalization of the firm exceeds the firm 's net worth , it can be attributed to business goodwill.
WHAT CREATES BUSINESS GOODWILL
Everything comes with a price tag, so does "GOODWILL". It is earned-bestowed upon a company by the consumers, employees, stakeholders. Doing good business creates goodwill. Being fair, reasonable in actions, providing good quality product and delivers on promise to the vendors, clients and other stakeholders are the steps towards building goodwill.
# Apart from this , companies engage in programs that are designed to enhance goodwill :helping for a good cause buys good press( strategic philanthropy).You 'll often see offers that mentions a certain percentage going to X charity. This creates a win-win situation.
# Now a days , the word that is in vogue is "transparent". A brand that is completely open and…