From the owner's perspective, which of the following would be considered an advantage of harvesting via withdrawal of cash flows from the firm?
A) Retaining control
B) Preserving cash for later reinvestment
C) Greater latitude in seeking out a buyer for the firm
D) Increasing long-term returns from the business

Question

Quizplus · Accepted Answer

By withdrawing cash flows from the firm, the owner is able to retain control over the business and make decisions about how to allocate the funds. This can be seen as an advantage for owners who are more interested in maintaining control over the direction of the business than maximizing returns or seeking out potential buyers.

From the Owner's Perspective, Which of the Following Would Be