Which of the following is NOT a characteristic of a sole proprietorship?

A sole proprietorship is a business structure owned and operated by a single individual. One of its defining features is that the owner has complete control over the operations and decision-making processes of the business. This allows for quick and efficient decision-making without needing to consult partners or a board of directors.

Unlimited liability is a critical characteristic as well; the owner is personally liable for all of the business's debts and obligations, which means that creditors can pursue the owner's personal assets in the event that the business cannot meet its financial obligations.

Regarding taxes, sole proprietorships benefit from a simple tax filing process. The business income is reported on the owner's personal tax return, making it less complicated than other business structures, such as corporations.

The incorrect option highlights a misunderstanding about sole proprietorships. They do not require partnerships for operational efficiency; in fact, they are structured to be run by one person without the need for partners. Partnerships might enhance operational efficiency in other business models, but one of the key strengths of a sole proprietorship is the independence it provides to the owner.