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Cultivation Goodwill: Goodwill is of tremendous importance in any service business, you know, and especially so in photography. cultivation goodwill of goodwill is, in its essence, the making of friends. You can meet new people by joining organizations in your community, but you can make friends of them, friends for your business, only by serving them and serving them well.
There are several especially dangerous pitfalls which you should beware, lest you lose goodwill:
1. Never take assignments which you are not equipped, with tools and experience, to handle well. As for material equipment, you should naturally have the best you can afford, but no photographer is expected to be able to handle all types of pictures. It is no disgrace to you as a professional to say frankly that you are not equipped to do the best possible job on any picture request. To the contrary, your honesty will be appreciated and may land you future orders which you are able to handle well.
Every successful firm enjoys some goodwill factors, but the goodwill itself can receive recognition on financial records only when one firm purchases another for a price that recognizes the goodwill involved. Past profits of the purchased unit may be used as a basis for estimating expected excess profits. Purchased goodwill should be carried on the records at cost or amortized cost.
Accountants differ on accounting for goodwill. Their views may be summarized as follows: (1) Once recorded, goodwill should be carried on the records indefinitely. (2) Goodwill should be carried at unamortized cost only so long as the earnings rate does not decrease. (3) When an above-normal earnings rate continues, purchased goodwill is probably being replaced with newly developed goodwill that cannot be recorded until sold; therefore the recorded goodwill should be amortized over a relatively short period. Many consider 3 to 5 years an appropriate time.
GOODWIN, Nat (1857-1919), American actor, who was among America's most popular comedians in the 1880's and 1890's, appearing in a long series of light comedies, farces, and musicals. Nathaniel Carll Goodwin was born on July 15, 1857, in Boston, where at the age of 17 he made his first appearance in the role of a newsboy at Howard's Atheneum. He played in vaudeville at Tony Pastor's in New York for a time and then was immensely successful as an impressionist in a production entitled Off the Stage (1876). |
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