Which description matches a Sole Proprietorship?

• A. A business owned by two partners with shared liability
• B. A corporation with stockholders
• C. The simplest business type; is owned by an individual (total management control). Main disadvantage owner is personally liable for the company's debt's and losses.
• D. A collective owned by a group of investors

Answer: (C)

Sole proprietorship is characterized by single ownership, total management control by that one owner, and unlimited personal liability for the business’s debts and losses. The description that calls it the simplest business type, owned by an individual with full management control, and notes that the owner is personally liable for the company’s debts and losses matches this structure exactly. In contrast, a business run by two partners with shared liability describes a partnership, a corporation with stockholders describes a separate legal entity with limited liability for owners, and a collective owned by a group of investors describes a cooperative or investor-led entity.