What are the major factors that give rise to goodwill?

  • Generally, the more established a business is, there is better chance of getting better goodwill than a similar business which has been newly started.
  • A new business does not have any goodwill.

Major factors which affects goodwill are:

  • (a)    Personality of the owner
  • (b)   Reputation for the service and quality of goods
  • (c)    Favorable location of the business
  • (d)   Other factors ( see earlier article on more details like definition of goodwill ,etc)

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.