The nature of goodwill
can be described as follows:
Goodwill is an intangible fixed asset. It is intangible because it
has no physical existence. It cannot be seen or touched.
It has a definite value depending on the profitability of the
It cannot be separated from the business.
It helps in earning more profit and attracts more customers.
It can be purchased or sold only when the business is purchased or
sold in full or in part.