Practicing Success
Which of the following factors does not affect the goodwill of a partnership firm? |
Nature of business Efficiency of customers Technical know-how Efficiency of management |
Efficiency of customers |
The correct answer is option 2- Efficiency of customers. Efficiency of customers does not affect goodwill of the partnership firm. The main factors affecting the value of goodwill are as follows: 1. Nature of business: A firm that produces high value added products or having a stable demand is able to earn more profits and therefore has more goodwill. |