Class 12 Accountancy Goodwill: Meaning, Nature, Factors affecting and Methods of valuation.
Goodwill: Meaning, Nature... Short & Easy Notes for Board Exam #1. What is goodwill? What are its characteristics? => Goodwill is good name of reputation of the business. It either than the normal profit. Following are its characteristics; (i) It is mirror of the business. (ii) It is an intangible assets. (iii) It can be bought and sold. (iv) it cannot be remain same throughout the year. (v) It is connected with the business. #2. Write the factors affecting the value of goodwill. => The factors, which are responsible for change the value of goodwill, are as below; (i) favourable location help to attract the customers. (ii) Monopolistic nature of the business, increase the value of goodwill. (iii) Required amount of capital. (iv) Trade cycle. (v) Condition of money market. (vi) Good industrial relation. (vii) Research and development work. (viii) Production of good quality product. #3. For what purpose goodwill to be calculated...