Sole Proprietorship is described as owned and operated by one person who typically has complete control over the business.

Sole Proprietorship is described as owned and operated by one person who typically has complete control over the business.

• A. Sole Proprietorship
• B. Partnership
• C. Corporations
• D. Limited Liability Company

Answer: (A)

Ownership and control by a single person defines a sole proprietorship. In this setup, one individual both owns and operates the business, making all major decisions and keeping all profits or absorbing all losses. There’s typically no legal separation between the owner and the business, so the owner bears personal liability for the business’s obligations. This contrasts with partnerships, where two or more people share ownership and control; corporations, which are separate legal entities owned by shareholders and managed by a board; and limited liability companies, which can have multiple owners and offer liability protection. The description given aligns with the single-owner, single-controller nature of a sole proprietorship.

Ownership and control by a single person defines a sole proprietorship. In this setup, one individual both owns and operates the business, making all major decisions and keeping all profits or absorbing all losses. There’s typically no legal separation between the owner and the business, so the owner bears personal liability for the business’s obligations. This contrasts with partnerships, where two or more people share ownership and control; corporations, which are separate legal entities owned by shareholders and managed by a board; and limited liability companies, which can have multiple owners and offer liability protection. The description given aligns with the single-owner, single-controller nature of a sole proprietorship.