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214 Corporate Finance BRILLIANT’S

2. "Goodwill is the value of all favourable attributes 2. ''JwS>{db EH$ ì¶mnma à{Vð>mZ go g§~§{YV g^r AZwHy$b
relating to a business enterprise.'' - R. Wiron E{Q´>ã¶yQ²>g H$m ‘yë¶ h¡&'' - R. Wiron
3. "It is the influence that the proprietor or his 3. ''¶h à^md h¡ Omo àmoàm¶Q>a ¶m CgHo$ Am°J}ZmBOoeZ
organization has upon the purchasing public H$m nM}qgJ Ho$ ~mX OZVm na n‹S>Vm h¡ {OgHo$ Ûmam
through which he is enabled to attract and dh g§ajU H$mo àmá H$aZo VWm AmH${f©V H$aZo ‘|
retain patronage." - Wildman gj‘ hmoVm h¡&'' - Wildman

Distinguishing Features of Goodwill JwS>{db Ho$ {d{eîQ> JwU
Goodwill is different from any other type JwS>{db AgoQ²>g Ho$ {H$gr Aݶ àH$ma go {^ÝZ hmoVm
of assets since it is the earning power of the h¡ ³¶m|{H$ ¶h ì¶mnma H$s A{ZªJ nm°da h¡& JwS>{db H$mo Aݶ
business. Following are the factors distinguish-
ing goodwill from most other assets: AgoQ²>g go n¥WH$ H$aZo dmbo H$maU {ZåZm§{H$V h¢…
(a) Goodwill cannot have a separate existence (a) JwS>{db H$m ì¶mnma go n¥WH$ ApñVËd Zht hmo gH$Vm
from the business and therefore, cannot h¡ VWm Bg{bE n¥WH$ go AZw^d Zht {H$¶m Om
be realized separately.
gH$Vm h¡&
(b) It is difficult to place a cost on goodwill as (b) Am§V[aH$ VWm ~mø n[apñW{V¶m| Ho$ n[aUm‘ñdê$n
the value may fluctuate from day-to-day à{V{XZ ‘yë¶ âb³MwEQ> hmoZo go JwS>{db na EH$
as a result of internal and external circum-
stances. bmJV bJmZm H${R>Z hmo OmVm h¡&
(c) The amount or value of the goodwill and (c) JwS>{db H$s am{e ¶m ‘yë¶ VWm BgHo$ dmñV{dH$
the assessment of its actual existence is ApñVËd H$m AmH$bZ ‘yë¶m| Ho$ {df¶mË‘H$ AZw‘mZm|
highly dependent on the subjective judg-
ment of the valuer. na A˶{YH$ {Z^©a H$aVm h¡&
Nature of Goodwill JwS>{db H$s àH¥${V
1. Cat Goodwill: Special feature of a cat is 1. H¡$Q> JwS>{db: EH$ H¡$Q> H$m {deof JwU h¡ {H$ ¶h
that it remains at one place and does not change EH$ ñWmZ na ahVr h¡ VWm BgHo$ ahZo Ho$ ñWmZ H$mo ~ma-
its living place from time to time. It is said that
~ma ~XbVr Zht h¡& ¶h H$hm OmVm h¡ {H$ H¡$Q> ñWmZ H$mo
cat loves place more than person. Goodwill of ì¶{³V go A{YH$ ng§X H$aVr h¡& {H$gr ì¶mnma H$s JwS>{db
some businesses is like cat because it depends
on the place of business and it does not change H¡$Q> Ho$ g‘mZ h¡ ³¶m|{H$ ¶h ì¶mnma Ho$ ñWmZ na {Z^©a
due to change in ownership. This type of Good- H$aVm h¡ VWm ¶h ñdm{‘Ëd ‘| n[adV©Z Ho$ H$maU Zht
will has stability and therefore its value is al- ~XbVr h¡& JwS>{db Ho$ Bg àH$ma ‘| ñWm{¶Ëd hmoVm h¡ VWm
ways maximum. Bg{bE BgH$m ‘mZ h‘oem A{YH$V‘ hmoVm h¡&
2. Dog Goodwill: Dog has more affection 2. S>m°J JwS>{db… S>m°J H$m ñWmZ H$s Anojm BgHo$
for its owner than the place. It is faithful to its ‘m{bH$ go A{YH$ bJmd hmoVm h¡& ¶h BgHo$ ‘m{bH$ Ho$ à{V
owner. There are some businesses whose Good- A{YH$ {dídgZr¶ hmoVm h¡& Hw$N> ì¶mnma h¢ {OZH$s JwS>{db
will depends on the owner. If owner is changed, ‘m{bH$ na {Z^©a H$aVr h¡& ¶{X ‘m{bH$ ~Xb OmVm h¡ Vmo
the goodwill is gone, i.e. Goodwill moves ac- JwS>{db Mbr OmVr h¡ AWm©V² JwS>{db ‘m{bH$ Ho$ AZwgma
cording to owner, such goodwill is called Dog MbVr h¡& Bg JwS>{db H$mo S>m°J JwS>{db H$hVo h¢ VWm
Goodwill and its value is less. BgH$m ‘mZ H$‘ h¡&