What type of business is characterized by having a single owner?

A sole proprietorship is defined as a business entity owned and operated by a single individual. This ownership structure is the simplest form of business and offers complete control to the owner, allowing them to make decisions independently without needing to consult partners or shareholders.

In a sole proprietorship, the owner retains all profits but is also personally liable for all debts and obligations of the business. This means that the owner's personal assets can be at risk if the business incurs debts or legal issues. The ease of formation and minimal regulatory requirements make this type of business appealing to many individuals starting their own ventures.

Other business types, such as partnerships, corporations, and limited liability companies, involve multiple owners or shareholders and have different legal implications, levels of liability, and organizational structures, distinguishing them clearly from sole proprietorships.