Question

Which of the following is known as the value addition to a business because of business reputation,customers’ loyalty, brand name etc : *

a) Assets

(b) Market capitalization

(c) Goodwill

(d) Market penetration

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Answer 1

Answer:

d) market penetration

Answer 2

Answer:

(C) Good will

Explanation:

Value addition to a business because of its business reputation, customers loyalty, brand name etc.. is known as Good will.

Goodwill is intangible in nature i.e. its physical presence cannot be felt.

However, it can be valued by its net assets in the business.

Good will is categorized as intangible asset. It is amortized over the life of the asset.