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Goodwill: meaning, definitions and examples

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goodwill

 

[ ˈɡʊdˌwɪl ]

Noun
Context #1 | Noun

business concept

Goodwill refers to an intangible asset that represents the value of a company's brand, customer relationships, employee relations, and other factors that contribute to the company's earning power. It is often calculated during the acquisition of a business, where the purchase price exceeds the fair market value of its tangible assets.

Synonyms

brand value, intangible asset, reputation

Examples of usage

  • The company was sold for $2 million, which included $500,000 of goodwill.
  • Goodwill can play a significant role in business valuations.
  • Investors consider goodwill as part of their investment strategy.
Context #2 | Noun

social context

Goodwill can also refer to the friendly, helpful, or cooperative feelings or attitudes that people have toward one another or toward a group. It is important in establishing and maintaining relationships, often resulting in increased trust and cooperation.

Synonyms

benevolence, friendliness, kindness

Examples of usage

  • The organization built goodwill in the community through its charitable donations.
  • Acts of kindness can help foster goodwill among neighbors.
  • The company's commitment to sustainability has created goodwill with its customers.

Translations

Translations of the word "goodwill" in other languages:

🇵🇹 boa vontade

🇮🇳 अच्छी इच्छा

🇩🇪 Wohlwollen

🇮🇩 niat baik

🇺🇦 добра воля

🇵🇱 dobra wola

🇯🇵 善意

🇫🇷 bonne volonté

🇪🇸 buena voluntad

🇹🇷 iyi niyet

🇰🇷 선의

🇸🇦 نية حسنة

🇨🇿 dobrá vůle

🇸🇰 dobrá vôľa

🇨🇳 善意

🇸🇮 dobra volja

🇮🇸 góðvilji

🇰🇿 жақсы ниет

🇬🇪 კარგი ნება

🇦🇿 yaxşı niyyət

🇲🇽 buena voluntad

Word origin

The term 'goodwill' originates from the combination of 'good' and 'will', with 'good' deriving from Old English 'gōd', which means virtuous or beneficial. The conceptual melding of these terms emphasizes a positive disposition toward others, whether in personal relationships or commerce. Goodwill has been integral to trade and economics since the rise of marketplace interactions, where trust and reputation heavily influence business transactions. In the 16th century, this concept became formalized in accounting and business law, representing intangible benefits a company might possess, beyond physical assets. The historical development of goodwill reflects a broader understanding of the importance of relationships in commerce and society.