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. There are 2 or more owners.

   • General Partnership (True)
   • Sole Proprietorship (False)
   • Corporation (True, but can also have a single owner in the case of a sole shareholder corporation)

2. Stocks may be issued to generate income.

   • Corporation (True)
   • Sole Proprietorship (False)
   • General Partnership (False)

3. There is unlimited liability.

   • Sole Proprietorship (True)
   • General Partnership (True)
   • Corporation (False)

4. There is 1 owner.

   • Sole Proprietorship (True)
   • General Partnership (False)
   • Corporation (False, but can have a sole shareholder)

In summary:

• Sole Proprietorship: 1 owner, unlimited liability (True for both).
• General Partnership: 2 or more owners, unlimited liability (True for both).
• Corporation: Can have multiple owners, can issue stocks (True for both but False for the other two).