A business owned by a single person is called a

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

Answer: (C)

Owning a business by a single person is called a sole proprietorship. In this setup, one person owns and runs the business, with no separate legal entity from the owner. The owner keeps all profits and is personally responsible for debts and obligations, and the business is typically easy to set up with minimal formal requirements. This differs from a corporation, which is owned by shareholders and is a separate legal entity; a partnership, which involves two or more owners; and a franchise, where you operate under someone else’s brand and system rather than owning a standalone business.