Final answer:
Sole proprietorships have no defined time limit, are not perpetual, do not continue after the owner's death, and do not allow for a deceased partner's family to take over by default.
Step-by-step explanation:
Sole proprietorships have distinct characteristics when it comes to their existence and continuity. Firstly, while they have no specific time limit on how long they may exist, they are not perpetual in the same way as corporations. In other words, they do not continue upon the death of the owner.
As a result, if a sole proprietor passes away, the business does not automatically pass on to family members or anyone else. Secondly, they are not structured to allow the easy transition of ownership, such as a member of the deceased partner's family taking over as a partner, without establishing a new business entity or restructuring the business.
Sole proprietorships have the following characteristics:
Sole proprietorships have no time limit on how long they may exist. They can continue indefinitely as long as the owner wishes to run the business.
They are perpetual, meaning they can continue to exist even after the death of the owner.
They do not allow a member of the deceased partner's family to take over as a partner because sole proprietorships are owned and operated by a single individual, not multiple partners.
Therefore, the correct answer is 1) They have no time limit on how long they may exist.