Which of the following is a characteristic of a sole proprietorship?

business owned by more than one person

easy to form

each stockholder acts as an owner of the company

can continue indefinitely

Answer - Easy to form

I believe that's right.

A characteristic of a sole proprietorship is that it is easy to form.

To determine the characteristic of a sole proprietorship from the given options, we need to understand the nature of a sole proprietorship.

A sole proprietorship is a type of business entity owned and operated by a single individual. It is the simplest form of business organization, requiring no formal legal documentation to establish.

Let's analyze the options provided:

1. Business owned by more than one person: This option describes a partnership or a corporation, not a sole proprietorship. In a sole proprietorship, there is only one owner.

2. Easy to form: This option correctly describes one of the characteristics of a sole proprietorship. Since the business is owned and operated by a single individual, no legal formalities or complex procedures are required to establish it. As long as the person starts operating as a business, they are considered a sole proprietor.

3. Each stockholder acts as an owner of the company: This option is more relevant to a corporation structure, where ownership is represented by shares of stock. In a sole proprietorship, there are no stockholders or shares because there is only one owner.

4. Can continue indefinitely: This option does not directly relate to the characteristic of a sole proprietorship. The lifespan of a sole proprietorship is tied to the owner's lifespan. If the owner dies or decides to transfer or terminate the business, the sole proprietorship ends.

Considering the above analysis, the characteristic of a sole proprietorship from the given options is "easy to form."