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.(2 points)

Here’s how each characteristic applies to the different types of business structures:

1. Stocks may be issued to generate income.

   • Corporation (Yes)
   • Sole Proprietorship (No)
   • General Partnership (No)

2. There are 2 or more owners.

   • Corporation (No, can have 1 owner)
   • Sole Proprietorship (No)
   • General Partnership (Yes)

3. There is unlimited liability.

   • Sole Proprietorship (Yes)
   • General Partnership (Yes)
   • Corporation (No, limited liability)

4. There is 1 owner.

   • Sole Proprietorship (Yes)
   • General Partnership (No)
   • Corporation (No, but can have one owner in the case of a single-member corporation)

In summary:

• Stocks may be issued to generate income: Corporation
• There are 2 or more owners: General Partnership
• There is unlimited liability: Sole Proprietorship and General Partnership
• There is 1 owner: Sole Proprietorship