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 three types of business structures:

1. There is 1 owner.

   • Sole Proprietorship: Yes
   • General Partnership: No
   • Corporation: No

2. There are 2 or more owners.

   • Sole Proprietorship: No
   • General Partnership: Yes
   • Corporation: Yes (can have multiple shareholders)

3. There is unlimited liability.

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

4. Stocks may be issued to generate income.

   • Sole Proprietorship: No
   • General Partnership: No
   • Corporation: Yes

In summary:

• Sole Proprietorship: 1 owner, unlimited liability
• General Partnership: 2 or more owners, unlimited liability
• Corporation: 2 or more owners, limited liability, can issue stocks