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Goodwill
An intangible asset that arises when a business is acquired for more than the sum of the fair value of its identifiable net assets.
Annual Impairment Test
A review conducted yearly to determine if an asset's carrying value exceeds its recoverable amount, leading to an adjustment if necessary.
Tax-loss Carryforwards
A provision in the tax code that allows an individual or company to use losses from one year to offset future profits for tax purposes.
External Growth
Expansion of a company's operations through acquisitions, mergers, or partnerships, rather than through organic growth.
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