A sole trader's business is owned by:

**The reasoning** A **sole trader** (also called sole proprietor) is the simplest form of business ownership. The term "sole" literally means "single" or "alone." When someone operates as a sole trader, they are the only owner of the business. They make all decisions, keep all profits, and bear all risks personally. Think of the woman selling provisions in your neighborhood, or the tailor who runs his own shop — if they're working alone as owners (even if they have employees), they're sole traders. **Why the wrong options tempt you** - **A (Two people)**: This describes a *partnership*, where two or more people share ownership - **D (Many shareholders)**: This is a *company* (limited liability company), where ownership is divided into shares - **C (A government)**: This would be a *public enterprise* or state-owned business Students mix these up when they focus on employees instead of *owners*. A sole trader can hire workers, but there's still only ONE owner. **Quick takeaway** **Sole = Single owner.** One person owns everything, decides everything, and answers for everything in the business.