Ask a Question
or
Create a Poll
  1. Home /
  2. Questions /
  3. Business
  4. / Business (General)

by Pastaman on August 7th, 2003

Pastaman

Question

Help answer this question below.

What is goodwill?

Share:
Other

Answers. Showing one answer.

  • by Krezzy on September 14th, 2006

    Krezzy

    Goodwill means simply to have the will to do good in a community, or, to simply try to help people who are in need (for example, serving at a soup kitchen or at a homeless shelter).


    Business
    Goodwill is a concept used to refer to an individual or a businesses ability to exert influence within a community, club, market or another type of group, without having to resort to the use of an asset (such as money or property), either directly or by the creation of a lien. Different entities will have different amounts of goodwill within the group.

    An entity typically has goodwill because of the others trust that it will act in the common interest or, more generally, that it will live up to its claims. Sometimes, the trust needs only extend to that the entity will act a bona fide and thus is not broken in the eventuality that the entity failed to comply with its promises due to external factors.

    For example,

    A bank has goodwill within the banking system and a particular market because of the others faith that it will honor all debts, refrain from unjustifiably issuing new currency and that it will, in general, perform all transactions in a correct manner. It can, as a consequence, attract financial capital from the market by borrowing without having to secure such loans with real-estate or other type of guarantees.
    Likewise, an individual can have goodwill towards a financial institution by being able to contract a credit without having a lien placed on a piece of property and without having to provide a guarantor.
    The head of government (e.g. the Prime Minister) has goodwill before the good people of a state because they comply with his or hers decrees without being coerced to do so, in the belief that he or she acts in the common interest. The Prime Minister thus holds an Office of Trust.
    The concept of goodwill also applies on a smaller scale, with regard to, for example, customer-vendor relations and even ones standing (or respect) within his or her group of acquaintances.

    Comments

    No comments. Post one | Permalink

Want to attach an image to your answer? Click here.

Did this answer your question? If not, then ask a new question or create a poll.

More Questions. Additional questions in this category.

You're reading What is goodwill?

Follow us on Facebook!

Related Ads

Related Questions

Professionally Researched

Answerbag

a Demand Media company