From the owner's perspective,what would be considered an advantage of harvesting by withdrawing cash flows from the firm?
A) retaining control
B) preserving cash for later reinvestment
C) obtaining greater latitude in seeking out a buyer for the firm
D) increasing long-term returns from the business

Question

Quizplus · Accepted Answer

Retaining control is considered an advantage of harvesting by withdrawing cash flows from the firm because the owner can continue to make decisions about the business's operations and direction without having to sell equity or bring in external investors, which could dilute their control.

From the Owner's Perspective,what Would Be Considered an Advantage of Harvesting