Which of the following factors leads to a higher goodwill for firms?(A) Firms having long term contracts for supply of materials(B) Firms with efficient management(C) Firms which are highly profitable(D) Firms which do not have competitive advantagesChoose the correct answer from the options given below:

Goodwill represents the reputation and value of a business that enables it to earn higher profits compared to normal expected profits. Factors contributing to higher goodwill include:(A) Long-term contracts: Assures consistent supply and stability, reducing business risk.(B) Efficient management: Leads to better productivity, lower costs, and higher operational success.(C) High profitability: Directly indicates strong market position and value.(D) Absence of competitive advantage: This would decrease or negatively impact goodwill, not increase it.Therefore, factors (A), (B), and (C) lead to higher goodwill.