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Question
The excess amount which the firm can get on selling its assets over and above the saleable value of its assets is called ______.
Options
Surplus
Super profits
Reserve
Goodwill
MCQ
Fill in the Blanks
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Solution
The excess amount which the firm can get on selling its assets over and above the saleable value of its assets is called goodwill.
Explanation:
The excess amount which the firm can get on selling its assets over and above the saleable value of its assets is called Goodwill. This represents the intangible value of the firm such as reputation, customer loyalty, and brand value, which allows it to earn super profits in the future.
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