PLEASE HELP! why is liquidating the lease a desirable option for a harvest plan?

A. it is done only if an initial public offering fails

B. it is a time-consuming and labor intensive option

C. the business will likely lose money when liquidating

D. it is the least creative business solution

C

Explanation:

Lease liquidation is a practice of cancelling a lease agreement before the expiration of the initially agreed lease period which may be as a result of some unforeseen situation at the the time of forming lease.

Harvest plan on the other hand is a way of reducing spending on a product that is approaching its end of its life cycle in order to maximize profit.

Liquidating the lease should be a less desirable option compared to harvest plan as the business will likely loose money when liquidating a lease

a.   is the correct choice.

good luck. : )

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