Question

Which of the following factor does not affect the Goodwill of the firm?
(1 Point)
After sale services
Good customer relations
Favorable contracts and favorable location
Change in taxation policy by the government

Answer 1

Answer:

Change in taxation policy by the government

Explanation:

it is so because, unlike the other three options, taxation policy is something that would have an impact on either all the firms of a particular industry or a selected few hence having an impact on goodwill of all these firms only indirectly.

But, after sales services, good customer relations and favourable contracts are subjective to a firm and have a direct impact on the goodwill of that particular firm.

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