UGC NET COMMERCE June 2019 Q54 Multiple Choice Questions

Option : B
Explanation : According to Wilson, “Goodwill has been very ably divided into three types—cat, dog and rat—in view of the peculiar habits of these three animals. The cat tends to stick to the abode, cat goodwill is therefore that which will adhere to the business which is being transferred and is the most valuable. The dog follows his master, dog goodwill is difficult to transfer and is correspondingly less valuable. The rat is a migrant, rat goodwill is practically valueless, as it represents those customers who have no specialities either to the business or its properties and who may be here today and gone tomorrow. Summed up, cat goodwill is adherent; dog personal and rat fugitive. Adherent goodwill is only valuable as attaching to the business; personal goodwill is unsaleable, fugitive goodwill is only valuable in that as one fugitive goes another may arrive.”