Question

How does location affect the Goodwill of a business?

Answer 1

The place or locality where the business is situated affected the Goodwill of a business. If the business is centrally located or located in a very prominent place where it can attract more customers, the turnover of the firm increases and hence, its goodwill. Location of the business should always be taken into consideration while ascertaining the value of goodwill of a firm.