What is the impact of a centrally located business on goodwill? |
It decreases the value of goodwill It increases the value of goodwill It has no effect on the value of goodwill It makes the valuation of goodwill difficult |
It increases the value of goodwill |
A centrally located business has a positive impact on goodwill and tends to increase its value. Being located in a central or prime location often brings advantages such as easy accessibility, high visibility, and heavy customer traffic. These factors contribute to the firm's reputation, customer base, and overall business prospects, leading to an enhanced value of goodwill. A centrally located business is more likely to attract customers, generate higher sales, and enjoy greater visibility in the market. These favorable conditions create a positive perception of the firm, which in turn increases its goodwill. |