What do you call a business that is owned by one person?

What do you call a business that is owned by one person?

• A. Corporation
• B. Partnership
• C. Proprietorship
• D. Cooperative

Answer: (C)

A business owned by one person is referred to as a proprietorship, specifically a sole proprietorship. This type of business structure is characterized by being owned and operated by a single individual who has full control over the business and its operations. The owner is personally responsible for all debts and liabilities incurred by the business, which means there is no legal distinction between the owner and the business itself. This structure is often chosen for its simplicity, ease of setup, and complete independence in decision-making. In contrast, a corporation involves multiple shareholders and is recognized as a separate legal entity, whereas a partnership consists of two or more individuals who share ownership and responsibilities. A cooperative is an organization owned and operated for the benefit of those using its services. These other business structures lack the singular ownership characteristic that defines a sole proprietorship.

A business owned by one person is referred to as a proprietorship, specifically a sole proprietorship. This type of business structure is characterized by being owned and operated by a single individual who has full control over the business and its operations. The owner is personally responsible for all debts and liabilities incurred by the business, which means there is no legal distinction between the owner and the business itself. This structure is often chosen for its simplicity, ease of setup, and complete independence in decision-making.

In contrast, a corporation involves multiple shareholders and is recognized as a separate legal entity, whereas a partnership consists of two or more individuals who share ownership and responsibilities. A cooperative is an organization owned and operated for the benefit of those using its services. These other business structures lack the singular ownership characteristic that defines a sole proprietorship.