A business owned and operated by one person.

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

Answer: (C)

A business owned and operated by one person is a sole proprietorship. This structure means a single individual owns the company and makes all the decisions, with the owner and the business not treated as separate legal entities. Profits and losses flow directly to the owner’s personal taxes, and the owner is personally responsible for all debts and obligations. It’s typically the simplest and least expensive form to start.

In contrast, a corporation is owned by shareholders and exists as its own legal entity; a partnership involves two or more owners; a cooperative is owned and controlled by its members who use its services.