Which event does not require the valuation of goodwill in a partnership firm?

Introduction of new marketing strategies

The correct answer is option 4- Introduction of new marketing strategies.

Introduction of new marketing strategies does not require the valuation of goodwill in a partnership firm.

Introduction of new marketing strategies does not typically require valuation of goodwill in a partnership firm. Valuation of goodwill is generally necessary during specific events or circumstances that involve changes in the partnership structure or operations. Other options involve significant changes in the partnership's composition, profit sharing, or continuation of the business, which can impact the value of goodwill. However, the introduction of new marketing strategies, while important for business growth, does not directly involve the valuation of goodwill. It focuses more on enhancing the firm's marketing efforts and expanding its customer base.

Normally, the need for valuation of goodwill arises at the time of sale of a business. But, in the context of a partnership firm it may also arise in the following circumstances:

• 1. Change in the profit sharing ratio amongst the existing partners;
• 2. Admission of new partner;
• 3. Retirement of a partner;
• 4. Death of a partner; and
• 5. Dissolution of a firm involving sale of business as a going concern.
• 6. Amalgamation of partnership firms.