From an individuals perspective which of the following is no

From an individual\'s perspective, which of the following is not an advantage of utilizing debt when determining whether debt (e.g., long-term securities) or stock should be used as part of the capital structure of the business?

A.	It can be transferred without concern for control.
	B.	It is less costly to pay a return to the investor.
	C.	It provides a defense against possible imposition of the accumulated earnings tax.
	D.	It receives more favorable treatment should it become worthless.

The answer is option (D), it receives more favorable treatment should it become worthless.

Debt repayment has to be done in case the company becomes worthless or has gone into liquidation. Even if the company has no funds , it has to by any means pay off the debts and an individual\'s personal assets may also be attached for this purpose. This causes a great burden on the firm should it not have enough profits which is a disadvantage of debt financing.

$From an individual\'s perspective, which of the following is not an advantage of utilizing debt when determining whether debt (e.g., long-term securities) or st$

From an individuals perspective which of the following is no

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