Question

Good will of the business of a partnership firm is the property of _________.

• A. partners
• B. partner who gave his property to firm
• C. partnership firm
• D. none of the above

Answer 1

Answer: (C)

partnership firm

A business builds up some reputation after it has continued for some time . If the reputation is good, the firm will come to acquire a fixed clientele in the sense that a number of customers will automatically make their purchases from the firm . This is a very valuable asset even if one can not touch or see it. The asset is known as goodwill.