Goodwill represents the future benefits of unidentifiable assets. Which of the factors listed below contribute to the value of goodwill?
I.Favourable location
II. Efficient manufacturing
III. Good customer relations
IV. Staff skills and experience
A) I, II and IV.
B) II and III.
C) II and IV.
D) I, II, III and IV

Question

Quizplus · Accepted Answer

All of the factors listed contribute to the value of goodwill. A favourable location can attract customers and increase revenue, efficient manufacturing can reduce costs and increase profitability, good customer relations can lead to repeat business and positive word-of-mouth advertising, and staff skills and experience can enhance the quality of products or services provided.

Goodwill Represents the Future Benefits of Unidentifiable Assets