Canadian Securities Course (CSC) Level 1 Practice Exam 2026 - Free CSC Level 1 Practice Questions and Study Guide

Question: 1 / 400

What is goodwill?

The excess of the amount paid for shares

Goodwill is the excess of the amount paid for shares over the fair market value of the net assets acquired. It represents the intangible value of a business such as brand reputation, customer relationships, and strategic positioning that are not separately identifiable. This is why option A, "The excess of the amount paid for shares," is the correct answer.

Options B, C, and D are not correct because goodwill does not refer to the market value of company equipment, the revenue generated from customer loyalty, or the salary paid to executives.

Get further explanation with Examzify DeepDiveBeta

The market value of company equipment

The revenue generated from customer loyalty

The salary paid to executives

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