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Why is a retiring partner entitled to a share of goodwill?
AHe invested the largest capital
BGoodwill always appears in the books
CThe law forces payment in cash
DAll partners together earned the goodwill
Answer & Solution
Correct answer: D. All partners together earned the goodwill
Goodwill is built up by every existing partner's work, so the one leaving has a claim on his portion of it.
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