In terms of business organization, which type involves a single-person ownership?

A sole proprietorship is a type of business organization that is owned and operated by a single individual. This form of ownership allows the owner to maintain complete control over all aspects of the business, making decisions without the need to consult partners or shareholders. This simplicity in management is one of the major advantages of having a sole proprietorship, as it eliminates the complexities associated with multiple owners or external stakeholders.

In a sole proprietorship, the owner personally assumes all liabilities and responsibilities, which means they are directly accountable for any debts or legal actions the business may encounter. This structure is often favored by individuals who are just starting their business or those who want to keep things uncomplicated.

In contrast, partnerships involve two or more individuals sharing ownership and responsibilities for the business. Corporations are separate legal entities owned by shareholders and require more formalities and regulations. A limited liability company (LLC) combines aspects of both corporations and partnerships but also requires at least one member; it cannot be a single-person ownership in the same sense as a sole proprietorship.