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How is Goodwill of the firm created? -

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Question

How is Goodwill of the firm created?

Options

  • Due to the reputation of the firm.

  • Extra earning capacity of the firm.

  • Due to the reputation of the firm and extra earning capacity of the firm.

  • Neither due to the reputation of the firm nor extra earning capacity of the firm.

MCQ

Solution

Due to the reputation of the firm and extra earning capacity of the firm.

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