What is the definition of a sole proprietorship?

A sole proprietorship is defined as an independently owned and managed business, meaning that a single individual is responsible for all aspects of the business. This structure allows the owner to make decisions freely and retain all profits generated. The owner has full control over business operations, which can promote flexibility and quick decision-making. Sole proprietorships are often easy to establish and can be less regulated compared to other business structures, further emphasizing the independent aspect of ownership and management. This type of business does not have a legal distinction between the owner and the business, making it simpler in terms of taxation and organization.

Other options describe different business models that do not align with the definition of a sole proprietorship, such as partnerships or cooperatives, which involve multiple owners or members. Thus, the distinction of being independently owned and managed is what firmly identifies a sole proprietorship.