What type of asset is Goodwill?

Intangible Asset

The correct answer is option 2- Intangible Asset.

Goodwill is an intangible asset.

Goodwill is classified as an intangible asset because It cannot be seen or touched (unlike tangible assets like machinery or buildings), But it adds value to the business (through reputation, brand value, customer loyalty, etc.),and it helps the firm earn extra (super) profits.