Which form of business is owned by a single individual?

Which form of business is owned by a single individual?

• A. Sole proprietorship.
• B. Corporation.
• C. Cooperative.
• D. Partnership.

Answer: (A)

A single individual owning and operating the business is a sole proprietorship. It’s the simplest form of ownership where there’s no legal separation between the owner and the business. The owner has full control and keeps all profits, but also bears all liabilities and debts. It’s easy to set up and commonly used for small ventures, with taxes reported on the owner’s personal tax return. This differs from other forms, such as a corporation (owned by shareholders and treated as a separate entity), a cooperative (owned by its members who use the services), or a partnership (owned by two or more people sharing ownership and responsibilities).

A single individual owning and operating the business is a sole proprietorship. It’s the simplest form of ownership where there’s no legal separation between the owner and the business. The owner has full control and keeps all profits, but also bears all liabilities and debts. It’s easy to set up and commonly used for small ventures, with taxes reported on the owner’s personal tax return. This differs from other forms, such as a corporation (owned by shareholders and treated as a separate entity), a cooperative (owned by its members who use the services), or a partnership (owned by two or more people sharing ownership and responsibilities).