Question

5. Which is the most important element in valuation of goodwill?

a.Type of Business
b. Efficiency of owner

c. Location of business
d. Future Maintainable Profit​

Answer 1

Answer:

profitability

Explanation:

the main emphasis is on future profit on the concern. whether concern will able to increase in net profit in future. Since the profit on in fast provider base for the concern future profits

Answer 2

Future Maintainable Profit​

Goodwill is to be estimated at 3 years acquisition of super profits in view of normal profits of most recent 5 years. As is obvious from the actual name, Future Maintainable Profits are the benefits that are relied upon to be acquired by the business in the approaching future. For working out the Future Maintainable Profits of a worry, we ought to examine the benefits acquired by that worry in a couple of years say 2,3,4, or 5 years.