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Home › CBSE Class 12 (Commerce) › Accountancy › Accounting for Partnership Firms: Change in Profit-Sharing Ratio and Admission of a Partner › A shop at a place with heavy customer traffic us…

A shop at a place with heavy customer traffic usually has what kind of goodwill?

ALower than average
BZero in all cases
CUnaffected by location
DHigher than average
Answer & Solution
Correct answer: D. Higher than average
Location is a factor affecting goodwill, and a busy spot brings more sales and profit.
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