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Question
If the business is centrally located or is at a place having heavy customer traffic, then the goodwill tends to be ______.
If the business is centrally located or is at a place having heavy customer traffic, then the goodwill tends to be ______.
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Solution
The correct option is A high
Goodwill is the value of the reputation of a firm in respect of the profits expected in future over and above the normal profits. Location is one of the factor affecting the value of goodwill, where the goodwill tends to be high, if the business is centrally located or is at a place having heavy customer traffic.
Goodwill is the value of the reputation of a firm in respect of the profits expected in future over and above the normal profits. Location is one of the factor affecting the value of goodwill, where the goodwill tends to be high, if the business is centrally located or is at a place having heavy customer traffic.
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