Simple Definition of goodwill
: a kind, helpful, or friendly feeling or attitude
business : the amount of value that a company's good reputation adds to its overall value
Full Definition of goodwill
1 a : a kindly feeling of approval and support : benevolent interest or concern b (1) : the favor or advantage that a business has acquired especially through its brands and its good reputation (2) : the value of projected earnings increases of a business especially as part of its purchase price (3) : the excess of the purchase price of a company over its book value which represents the value of goodwill as an intangible asset for accounting purposes
2 a : cheerful consent b : willing effort
Examples of goodwill in a sentence
She has goodwill toward all her coworkers.
They allowed him to keep the extra money as a gesture of goodwill.
Before 12th Century
First Known Use of goodwill
before 12th century
Rhymes with goodwill
anthill, at will, backfill, ball mill, bluegill, Brazil, breast drill, cranesbill, crossbill, de Mille, dentil, de-skill, distill, doorsill, downhill, duckbill, dullsville, dunghill, fire drill, foothill, freewill, free will, gin mill, gristmill, handbill, hawksbill, hornbill, Huntsville, ill will, instill, Knoxville, lambkill, landfill, limekiln, manille, McGill, Melville, mixed grill, molehill, mudsill, Nashville, no-till, pep pill, per mill, playbill, pot still, pug mill, quadrille, red squill, refill, roadkill, sawmill, Schuylkill, self-will, Seville, sheathbill, shoebill, show bill, sidehill, sigil, spadille, spoonbill, stabile, standstill, stock-still, storksbill, T-bill, treadmill, true bill, twin bill, twist drill, until, uphill, vaudeville, waxbill, waybill, windchill, windmill, Zangwill
GOODWILL Defined for Kids
Definition of goodwill for Students
: kind feelings or attitude
Legal Definition of goodwill
1 : an intangible asset that is made up of the favor or prestige which a business has acquired beyond the mere value of what it sells due to the personality or experience of those conducting it, their reputation for skill or dependability, the business's location, or any other circumstance incidental to the business that tends to draw and retain customers
2a : the value of projected increases in the earnings of a business especially as part of its purchase price b : the excess of the purchase price of a business above the value assigned for tax purposes to its other net assets
Additional Notes on goodwill
The Internal Revenue Code requires the purchaser of a business to allocate the purchase price among the various types of assets. Frequently the purchase price is greater than the sum of the values of the individual assets. The excess is labeled goodwill. Because of its indefinite life, goodwill is not amortizable as an asset. The purchaser will therefore usually try to keep the allocation to goodwill as small as possible.
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