goodwill

Examples of goodwill in the following topics:

• Word of Mouth

  • The term refers both to the execution of the marketing technique, and the resulting goodwill that is created.
  • The term refers both to the execution of the marketing technique, and the resulting goodwill that is created.

• Types of Public Relations

  • These events facilitate awareness, goodwill and interest e.g. open days and factory/warehouse visits. · Community Events – These help and contribute to local communities.
  • They facilitate sponsorship of local causes e.g. disability play grounds/centres, children's playgrounds etc and they contribute to the local community by being good employers and goodwill and awareness in the community.

• Owners' Equity

  • Ownership equity includes both tangible and intangible items (such as brand names and reputation/goodwill).

• Assets

  • Examples of intangible assets are goodwill, copyrights, trademarks, patents, computer programs, and financial assets, including such items as accounts receivable, bonds and stocks.

• Ethics: the authentic rim on the wheel

  • "Goodwill" is the difference between what your company is worth and what you are actually able to sell your venture for in the market place.
  • The more goodwill you generate the higher value of your company in comparison to your competition.
  • The goodwill you are generating from taking care of the environment could potentially come back to you in the form of good karma!

• Choosing the right relationship

  • Therefore, it may be in their best interest to partner with companies attempting to develop alternative energy sources, e.g. solar or wind power, to gain goodwill among consumers.

• Debt Utilization Ratios

  • It is the ratio of total debt (the sum of current liabilities and long-term liabilities) and total assets (the sum of current assets, fixed assets, and other assets such as "goodwill").

• Basic types of accounts

  • Asset accounts: represent the different types of economic resources owned by a business, common examples of asset accounts are cash, cash in bank, equipment, building, inventory, prepaid rent, goodwill, accounts receivable.Assets are usually broken down into three categories: Current assets, fixed assets, and intangible assets.
  • Current assets are assets which could be converted to cash fairly quickly if necessary, certainly in less than a year.Examples of current assets include cash, cash in bank, inventory, prepaid rent, and accounts receivable.Fixed assets are assets of a more permanent nature like manufacturing equipment, buildings owned, and the like.Intangible assets, like goodwill, are monetary values assigned to intangibles like a brand name.It is typically used when accountants need to justify the purchase price of one company by another when the price cannot be justified by the monetary value of the purchased company's assets minus liabilities.Intangible assets are beyond the scope of this chapter as they apply more to larger corporations than to a start-up business.

• Sample Income Statement

  • Other revenues or gains: Revenues and gains from non-primary business activities (rent, patent income, goodwill).

• Defining the Income Statement

  • Other gains or losses, such as those from rent, income, patents, foreign exchange, goodwill, etc., should be included as unusual gains or losses.