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What might have happened if a business owner takes too much cash out of a business in form of drawings can affect the business how?

Asked by: kerleen charles 955 days ago - 2 Answers - 2415 views

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It could leave the firm in financial distress by affecting it’s cash flow. Also, an owner who is willing to take money from the business may not have the best interests of the organization in mind. Also there are legal issues if it is being with drawn for personal use that is not clearly defined in the articles of organization.

Answer by BusinessDictionary.com 955 days ago
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One must think before withdrawing money from business that money in the business is no more money in the wallet. If you’re in a business then you must think of growing your business, taking out too much money can hurt you down the road. Also, if you have other investors, taking too much can upset them.

Answer by Brian Reece 5 days ago

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