What is the definition of a Sole Proprietorship?

A sole proprietorship is defined as a business owned by a single individual, which means that one person is fully responsible for the business operations, liabilities, and profits. This structure is often the simplest form of business entity, allowing the owner to have complete control and make all decisions without the need for consensus from partners or a board of directors. The individual receives all the income generated from the business and is also personally liable for any debts or obligations incurred. This characteristic of complete ownership and accountability distinguishes sole proprietorships from other business structures such as partnerships, corporations, or non-profit organizations, which involve multiple owners, shareholders, or specific operational purposes.