- 1 Marks
Question
Goodwill can be valued in partnership when:
A. Partners make a profit
B. Large losses are made
C. A partner retires
D. A new branch is opened
E. A partner receives a salary
Answer
C
Explanation:
Goodwill is typically valued in a partnership when a partner retires or leaves the firm, as it represents the value of the business beyond its tangible assets. It helps compensate the retiring partner for their share of the business’s intangible value.
- Tags: Goodwill, Multiple Choice, Partnership, Valuation
- Level: Level 1
- Uploader: Theophilus