Intangible Assets

Question 1

What is Goodwill?

Answer 1

An intangible asset associated when one company purchases another company at a higher price then what it is valued for.

Question 2

Why would a company pay more for a company that what it worth?

Answer 2

Brand Name

Customer Base

Patents

Question 3

What is impairment?

Answer 3

A permanent reduction in the value of a company’s assets?

Question 4

When does goodwill impairment occur?

Answer 4

After a company purchases a new company, it must evaluate the goodwill asset every year, and claim the difference as a loss.

Can have devastating effect’s on a company’s value.

Question 5

What is Amortization?

Answer 5

Depreciation of an intangible asset. Like a patent, every year becomes less valuable.

Question 6

What are some ways to measure a company’s brand?

Answer 6

Instagram/Facebook Likes

Number of BBB Complaints

Number of Retweets

5 Star Amazon Reviews