17. A major advantage of debt financing is that interest is tax deductible. expense True False 18. operating cycles are generally longer than a year. True False 19. Which of the following statements is not true of a corporation? A. A corporation is taxed as a separate legal entity. B. A corporation has easy transferability of ownership. C. A corporation may have the ability to raise large amounts of capital. D. A corporation's owners have unlimited liability. 20. Which of the following would be included in cash flows from investing activities? A. Cash proceeds from sales. B. Cash received from an issuance of bonds C. Dividends paid to stockholders. D. Cash used to purchases of equipment. 21. Which of the following statements regarding business forms is true? A. A sole proprietorship is an unincorporated business owned one person. by B. All partnerships are owned by two people. C. A corporation is not a legal entity. D. An LLC (imited liability company) has the same tax treatment as a corporation. 22. All other things being equal, the higher the return on equity ratio, the better the financial per company True False 23. Treasury stock is a corporation's own stock that has been issued and subsequently repurchase corporation. True False