CUET Preparation Today
| A partnership firm is able to earn extra profits because of: |
Admission of new partner Retirement of old partner Goodwill Dissolution of firm |
| Goodwill |
| Over a period of time, a well-established business develops an advantage of good name, reputation and wide business connections. This helps the business to earn more profits as compared to a newly set up business. In accounting, the monetary value of such advantage is known as “goodwill”. |
