The value of a firm's reputation, location, earning capacity, and other intangibles that make the business profitable is called its
A) good character.
B) franchise.
C) goodwill.
D) distinction.
E) prestige.

Question

Quizplus · Accepted Answer

Goodwill refers to the intangible value of a firm's reputation, customer loyalty, and other factors that make it profitable. It is an important component of a company's overall value and can account for a significant portion of its worth.

Options A, B, D, and E are not correct. Good character, franchise, distinction, and prestige may all be important factors in a firm's success, but they do not capture the full value of the intangible assets that make up its goodwill.

The Value of a Firm's Reputation, Location, Earning Capacity, and Other