Question : Why a retiring or heirs of a deceased partner are entitled to a share of goodwill of the firm?
Option 1: Because the retiring or deceased partner will not be sharing future profits
Option 2: Goodwill is given to compensate him for the same.
Option 3: Both 1 and 2
Option 4: None of the above
Answer (1)
3rd Jan, 2024
Correct Answer: Both 1 and 2
Solution : Answer = Both 1 and 2
The retiring or heirs of a deceased partner are entitled to a share of goodwill of the firm because the departing partner will no longer share in the future profits, and goodwill is given to compensate for this loss.
Hence, the correct option is 3.
Comments (0)
