Question

What is negative goodwill?

Answer 1

Negative goodwill is a term that alludes to the deal by measure of cash paid, when an organization procures one more organization or its resources for fundamentally less than their reasonable market value. Negative altruism, by and large, shows that the selling party is troubled or has defaulted on some loans, and faces no other choice except to empty its resources for a small amount of their value.

Also see:

• MCQs on Goodwill
• Methods of Valuation of Goodwill
• Treatment of Goodwill

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