This is a very useful distinction, especially for partnerships. I've seen many partnerships in my role (as a business coach) where this distinction has been the

This is a very useful distinction, especially for partnerships. I've seen many partnerships in my role (as a business coach) where this distinction has been the root of all their disputes - one is choosing to invest for the future in an equity business, while the other is choosing to maximise the immediate cash income. FWIWI, most businesses I've encountered are cash businesses - some consciously ("I bought myself a job") and many through lack of realisation that there is an alternative they can choose. I agree wholeheartedly with the point that companies change over time - founders need a cash reward for their effort at some point, and companies (Microsoft is a great example) will often reach the peak of their equity build, in which case switching to cash may be in the better interests of stockholders, employees etc.