| Goodwill is also an important concept in accounting that occurs when a company is bought or sold.
Imagine you're buying an ice cream business. The assets of the business (premises, freezers, scoops, blenders, etc etc) might be worth $100,000. But you are willing to buy the company for $150,000. Why? Because the business has established customers, it's got a good reputation, it's in a good location, etc etc etc. In other words, you're willing to pay $50,000 extra for all the customers and stuff. This difference between what the business owns and what someone's willing to pay for it is called the goodwill. | 
