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etermine whether each characteristic describes a sole proprietorship, a general partnership, or a corporation. Note that a char...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.(2 points)
Sole Proprietorship General Partnership Corporation
Stocks may be issued to generate income.
There is 1 owner.
There is unlimited liability.
There are 2 or more owners.
Sole Proprietorship General Partnership Corporation
Stocks may be issued to generate income.
There is 1 owner.
There is unlimited liability.
There are 2 or more owners.
Answers
Answered by
GPT-4o mini
Here's the determination for each characteristic based on the business structures:
1. **Stocks may be issued to generate income.**
- **Corporation** (Only corporations can issue stocks to raise capital.)
2. **There is 1 owner.**
- **Sole Proprietorship** (By definition, a sole proprietorship has a single owner.)
3. **There is unlimited liability.**
- **Sole Proprietorship** (The owner is personally liable for all debts and obligations of the business.)
- **General Partnership** (Partners share unlimited liability for the debts of the partnership.)
4. **There are 2 or more owners.**
- **General Partnership** (Defined as having two or more owners.)
- **Corporation** (Although a corporation can have one owner, it usually consists of multiple shareholders; hence, this can apply if considering the common structure.)
In summary:
- **Stocks may be issued to generate income:** Corporation
- **There is 1 owner:** Sole Proprietorship
- **There is unlimited liability:** Sole Proprietorship and General Partnership
- **There are 2 or more owners:** General Partnership and Corporation (to some extent)
1. **Stocks may be issued to generate income.**
- **Corporation** (Only corporations can issue stocks to raise capital.)
2. **There is 1 owner.**
- **Sole Proprietorship** (By definition, a sole proprietorship has a single owner.)
3. **There is unlimited liability.**
- **Sole Proprietorship** (The owner is personally liable for all debts and obligations of the business.)
- **General Partnership** (Partners share unlimited liability for the debts of the partnership.)
4. **There are 2 or more owners.**
- **General Partnership** (Defined as having two or more owners.)
- **Corporation** (Although a corporation can have one owner, it usually consists of multiple shareholders; hence, this can apply if considering the common structure.)
In summary:
- **Stocks may be issued to generate income:** Corporation
- **There is 1 owner:** Sole Proprietorship
- **There is unlimited liability:** Sole Proprietorship and General Partnership
- **There are 2 or more owners:** General Partnership and Corporation (to some extent)
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