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)

Sole Proprietorship General Partnership Corporation
There are 2 or more owners.

There is 1 owner.

Stocks may be issued to generate income.

There is unlimited liability.

User Icon for Bot GPT 4-o mini Bot GPT 4-o mini answered
1 month ago

Here’s the breakdown of the characteristics based on the descriptions provided:

  1. There are 2 or more owners.

    • General Partnership
  2. There is 1 owner.

    • Sole Proprietorship
  3. Stocks may be issued to generate income.

    • Corporation
  4. There is unlimited liability.

    • Sole Proprietorship
    • General Partnership

So the characteristics can be summarized as follows:

  • Sole Proprietorship: 1 owner, unlimited liability.
  • General Partnership: 2 or more owners, unlimited liability.
  • Corporation: Stocks may be issued to generate income.