An intangible asset representing the excess amount paid to acquire a company over its tangible book value. It reflects factors like brand reputation, customer relationships, employee expertise, and market position that provide competitive advantages but cannot be separately identified or valued.
From Middle English, originally meaning 'benevolent feeling' or 'kindly disposition.' The commercial sense of 'established reputation of a business' emerged in the 16th century. The modern accounting definition developed in the 20th century as companies began acquiring others for amounts exceeding their tangible asset values.
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