Abstract:
The paperstudiesthe concept of valuation of business and goodwill. The study sets out to address the relationship between thevaluation of business and goodwill.The paper centredon concepts such as valuation of the business, needs for valuation of a business, going concern value, liquidation value, valuation methods and conceptual framework of thestudy. The paper also assessed the importance of goodwill in the valuation of a business enterprise. The study revealed that understanding the concept of valuation of business from the angle of an accountant is necessary. An appraisal of a closely held business enterprise is not merely an academic exercise. Real businesses and individuals are involved, and the appraiser must be careful to reflect the judgments that real business owners and investors would apply in determining the fair market value for a business enterprise.
