goodwill exist only when the firm earns
Answers
Answered by
3
Answer:
A well-established firm earns a good name in the market, builds trust with the customers and also has more business connections as compared to a newly set up business. ... Thus, it can be said that goodwill exists only in case of firms making super profits and not in case of firms earning normal profits or losses.
Answered by
2
Answer:
Goodwill is the value of the reputation of a firm built over time with respect to the expected future profits over and above the normal profits. Goodwill is an intangible real asset which cannot be seen or felt but exists in reality and can be bought and sold. In partnership, goodwill valuation is very important. Thus, we will here discuss the various methods of Goodwill Valuation.
Similar questions