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Paul Is Approaching Retirement and Has Decided to Siphon Off

Question 49

Multiple Choice

Paul is approaching retirement and has decided to siphon off funds from his company rather than sell it. From his perspective, the advantage of systematically withdrawing cash from the firm is


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.

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