Flashcards : Mastering Business Goodwill and Commercial Leases — 24 cartes

Intangible asset arising from business acquisition for premium value.

Brand name, customer base, relations, patents, proprietary tech.

Found in assets section as an intangible asset.

Average profits multiplied by estimated years of usefulness.

Deduct abnormal profits/losses, non-operating income.

Customer relationships, protected IP, location, cash flow.

Reduction in recorded goodwill when asset value declines.

Enhance brand recognition and contribute to goodwill.

Provide competitive advantage, add to intangible assets.

Reputation, domain names, customer lists, patents, licenses.

Considered property, varies by jurisdiction; cannot exist independently.

Stock: transfer of shares; Asset: transfer of individual assets.

Usually capital gains tax; may be lower.

Liability transfers with stock; can be higher for buyer.

Contract to use property for a period without ownership.

Duration of the lease, often negotiable and renewable.

Rent, length, renewal options, build outs, maintenance.

Minimum nine years, can be extended; written recommended.

Must be fixed or determinable, serious, not symbolic.

Tenant can request renewal; landlord not obliged to renew.

Requires landlord approval and tenant notification.

Mutual agreement, expiry, legal issues, or breach.

Attached inseparably to business, cannot be sold separately.

No, it cannot exist independently from the business.