A business owned and managed by one person.

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

Answer: (A)

Owning and running a business by one person is a sole proprietorship. This structure places full control in the hands of a single owner who makes all decisions and retains all profits, but it also means the owner is personally responsible for all debts and obligations of the business. It’s the simplest and most common form for small, individual ventures, and the business’s income is taxed on the owner's personal tax return.

Sole partnership isn’t a standard form because a partnership implies more than one owner sharing profits and liabilities. A franchise describes operating a business under another company’s established brand and system, which may be owned by one person but isn’t defined by sole ownership itself. Thus, the best fit for a business owned and managed by one person is a sole proprietorship.