What Is The Purpose Of Goodwill?

Simply speaking, Goodwill is a silent player. It does nothing yet does a lot. Goodwill is an intangible asset and its purpose is to create a reputation for the company and increase its value. It increases the customer base for the company indirectly as it increases the brand value of the company. It attracts better workforce, no wonder why fashion designers want to work in companies like Chanel, Ralph Lauren, Tommy Hilfiger, Versace etc. as they have the reputation they have in the market, their value is more than the raw assets they possess. Goodwill serves the purpose to get easy loans, to attract more consumers and to establish reputation in the market.