Which business form is typically characterized by a single owner and no separate legal entity from the owner?

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

Answer: (C)

The main idea here is the legal relationship between an owner and the business. A sole proprietorship is formed when there’s a single owner and there is no separate legal entity distinct from that owner. That means the business and the owner are legally the same person, so the owner bears personal responsibility for the business’s debts and obligations, and profits are reported on the owner's personal tax return. Other structures create a separate legal entity or involve multiple owners: partnerships require more than one owner; corporations and LLCs are distinct entities that provide liability separation and involve formal governance and filings. Because the description specifies one owner and no separate legal entity, the best fit is a sole proprietorship.