Negative Goodwill What Is Negative Goodwill and Why Does It Occur

question 50

Essay

Negative goodwill
What is negative goodwill and why does it occur?

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Definitions:

Nominal

Referring to amounts or prices that have not been adjusted for inflation, representing face value rather than real value.

Unexpected Decrease

A sudden and unforeseeable reduction in value, amount, or number, often affecting financial markets or specific assets.

Market Interest Rates

The prevailing rates at which borrowers and lenders execute lending transactions in the market. It reflects the cost of borrowing money in the financial markets.

Positive Covenant

An agreement in a loan contract that requires the borrower to perform specific actions.