Question

Question
Determine whether each characteristic describes a sole proprietorship, a general partnership, or a corporation. Note that a characteristic may apply to more than one type of business structure. (16 points)
Sole Proprietorship General Partnership Corporation
There are 2 or more owners.



There is unlimited liability.



Stocks may be issued to generate income.



There is 1 owner.

Answer 1

Here’s a breakdown of the characteristics you provided for each business structure:

| Characteristic | Sole Proprietorship | General Partnership | Corporation |
|-----------------------------------------------------------|---------------------|---------------------|-------------|
| There are 2 or more owners. | | Yes | |
| There is unlimited liability. | Yes | Yes | |
| Stocks may be issued to generate income. | | | Yes |
| There is 1 owner. | Yes | | |

### Summary of Characteristics:
- **Sole Proprietorship**: 1 owner, unlimited liability.
- **General Partnership**: 2 or more owners, unlimited liability.
- **Corporation**: Stocks may be issued to generate income.

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