Which form of business organization is owned and managed by a single person?

• A. Partnership
• B. Sole Proprietorship
• C. Cooperative
• D. Corporation

Answer: (B)

The form of business organization owned and managed by a single person is the sole proprietorship. In this structure, one individual controls all decisions and runs the business, and there is no legal separation between the owner and the business. The owner keeps all profits, bears all losses, and reports business income on personal taxes. It’s the simplest and most common setup for small, single-owner ventures because of its ease of formation and direct control.

This differs from partnerships, which involve two or more owners sharing control; cooperatives, which are owned and run by the members who use their services; and corporations, which are separate legal entities owned by shareholders and managed by a board.