Explanation:

Goodwill means name and fame of the company. It is also regarded as attractive force which brings in the customers. It is an intangible asset which enhances reputation of the firm. Goodwill of a company depends upon numerous factors. Some of them are quality of products offered by it, location of the company and how well the company compete in the market. Goodwill is the reputation of an entity and it increases with advantage of location, product differentiation and with a potential to grow in future