Explain the following: 'Goodwill is an intangible, but not necessarily a fictitious asset'.

Goodwill is an intangible, but not necessarily a fictitious asset, representing the value, however, difficult its appraisement may be to its owner, of benefits arising from the business in question, such as the sole right to enjoy the profits of the business, and, where goodwill has been acquired, the sole right of succession to the advantages of the business, which have been built up in the past. Goodwill arises mainly: (a) by personal reputation of the owners; (b) by reputation of the goods dealt in; (c) by site monopoly or advantage; (d) by access to sources of supply, e.g., large quotas; (e) for patent and trade-mark protection; (f) effectiveness of publicity; (g) reputation of the first's goods and methods; (h) relationship between firm and personnel; and (i) growth element. The purchaser of goodwill acquires the trade marks, patents, copyrights etc. of the business as well as the benefits of contacts and all the benefits accruing from the location, reputation, connections, organisation and other exceptional features of the business. The purchaser will seek to express the sum payable in terms of the compound or capitalised value of an annuity of future differential or "super" profits that is those profits in excess of the marginal return normally arising.