Question

Which of the following is not the main factor affecting the value of Goodwill?

• A. Nature of Business
• B. Location
• C. Market situation
• D. Efficiency of Management of non-competitive firms

Hint:

Goodwill increases with strong management, good location, nature of business, and favorable market—but always within the firm itself.

Answer 1

The Correct Option is D

Step 1: Recall factors affecting goodwill.
Goodwill depends on various factors such as: - Nature of business (stable demand, profitability). - Location (prime location increases goodwill). - Market situation (favorable market increases goodwill). - Efficiency of management (of the business itself).

Step 2: Analyze the given options.
- Nature of Business → major factor.
- Location → major factor.
- Market Situation → major factor.
- Efficiency of management of non-competitive firms → irrelevant, because goodwill is affected by management of the firm itself, not of outside firms.

Step 3: Conclusion.
Thus, option 4 is not a main factor.

Final Answer: \[ \boxed{\text{Efficiency of Management of non-competitive firms}} \]