Question

what is the basic concept of goodwill poem?​

Answer 1

Answer:

Explanation:

Goodwill is nothing but the reputation of a partnership firm. It is computed on the basis of expected profits in excess of normal profits. It denotes the firm’s capacity to earn a greater profit in the future based on its track record.

All firms functioning in a geographical area and working in the same business can expect to earn similar profits. If one firm earns excess profits than it expects, this is due to its goodwill. This can happen because of various factors. For example, it offers better customer service or its partners have a greater market reputation.