Sole Proprietorship is defined as

• A. A corporation owned by many shareholders
• B. A partnership between two or more persons
• C. A cooperative enterprise
• D. A business owned and managed by a single individual

Answer: (D)

A sole proprietorship means one person both owns and runs the business. This setup is distinct from a corporation, which is owned by many shareholders, a partnership, which involves two or more people, or a cooperative, owned by its members for mutual benefit. The single owner has full control and keeps all profits, but also bears unlimited personal liability for the business’s debts. It’s usually easy to set up and taxed as part of the owner’s personal income, since the business isn’t a separate legal entity. This combination of ownership, management, and liability reflects a business owned and managed by a single individual.