Question

Which type of goodwill is best?

Answer 1

There are two types of goodwill: purchased goodwill and inherited goodwill. Of the two, inherited goodwill portrays the core value of the business and is best to have, since it includes the reputation of the business and it’s built over a period of time.

Also see:

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