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Essay / Importance of Goodwill - 702
When a company has made a decision to acquire another company, it must know that some companies will misrepresent themselves. Misrepresentation can cause the company to overpay for the acquisition. Additionally, to this, management must know that they cannot keep the goodwill of the company, because the company can forever inquire about the purchase on the financial statements. These are areas where companies can commit fraud by publishing