All of these are true regarding sole proprietorships, except:

1. A sole proprietorship is a business owned by one person.
2. A sole proprietorship is aseparate entity for legal or tax purposes.
3. In a sole proprietorship assets and liabilities of the owner must be kept separate from the business.
4. In a sole proprietorship business income is taxed at the personal tax rate.

2. All of these are true regarding partnerships, except:

1. A partnership has limited liability.
2. A partnership has limited life.
3. A partnership is not taxed as a separate entity.
4. A partnership is similar to a proprietorship.

3. A partnership agreement specifies:

1. How much the owners will invest.
2. The continuous life of the partnership.
3. The number of stocks issued and outstanding.
4. The articles of incorporation.