The good is that at which all things aim. The supreme good is eudaimion (unhappily–sorry for the pun–translated as “happiness”). Happiness is living well and doing well (1095a). But where is happiness located? Not in the Forms, contra Plato, but in an activity of the soul.
Moral virtue comes about as a result of habit. Contra the later Christian tradition, virtues do not arise by nature in us (1103a). Virtues are modes of choice located in the intermediate between two extremes. The intermediate is between excess and defect.