| | Goodwill |
 | | Although these factors that contribute to goodwill do not necessarily have an assignable value, they nonetheless add to the overall value of the business by convincing the purchaser that the company will be able to generate abnormally high future earnings. |
| | Although goodwill undoubtedly has value, it is still an intangible asset and as such is not recorded on a company's books. |
| | First, since goodwill is sometimes a huge component of a company's acquisition price (particularly in the case of large public companies), the amortization of goodwill can have a significant negative effect on the purchaser's net income. |
| www.referenceforbusiness.com /small/Eq-Inc/Goodwill.html (705 words) |
