Which type of business ownership is defined as ownership by a single individual?

Ownership by a single individual is defined as a sole proprietorship. In this business structure, the individual retains complete control over all decisions and operations of the business. This means that they bear all the risks, responsibilities, and liabilities associated with the business. The simplicity of a sole proprietorship makes it an attractive option for many small business owners, as it requires fewer formalities and is easier to establish compared to corporations or partnerships.

In contrast, partnerships involve two or more individuals sharing ownership, responsibilities, and profits, while corporations are separate legal entities owned by shareholders, providing limited liability protection. Limited liability companies (LLCs) combine elements of both partnerships and corporations, offering liability protection and tax benefits but also requiring more formal organization. Therefore, the defining characteristic of a sole proprietorship is its singular ownership structure, making it distinct from the other types of business ownership.