Goodwill Meaning, in general terms is the positive reputation of the firm, which enables it to achieve higher profitability, against its competitors, by helping it to attract a larger number of customers.
The definition of Goodwill given by various authorities are as under:
“The term goodwill is generally used to denote the benefit arising from connections and reputation.”
“Goodwill is nothing more than the probability that the old customers will resort to the old place”.
Spicer and Pegler
“Goodwill may be said to be that element arising from the reputation, connections or other advantages possessed by a business which enables it to earn greater profits than the return normally to be expected on the capital represented by the net tangible assets employed in the business.”