Question : Following factor affect the value of goodwill except
Option 1: Nature of business
Option 2: The form of business entity
Option 3: Technical know-how
Option 4: Efficiency of management
Correct Answer: The form of business entity
Solution : Answer = The form of business entity.
The form of business entity, such as whether a company is a partnership, corporation, or sole proprietorship, typically does not directly affect the value of goodwill. Instead, factors like the nature of the business, technical expertise, and management efficiency are more relevant in determining the value of goodwill.
Hence, the correct option is 2.




