GCECommerceBusiness Organisations2024

Which of the following best describes a sole proprietorship?

AA business owned and managed by two or more persons who share profits
BA business owned and controlled by one person who bears all risks and enjoys all profitsCORRECT
CA business incorporated under the Companies and Allied Matters Act with limited liability
DA business formed by the government to provide essential services to the public
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
A sole proprietorship is a one-person business where the owner provides all the capital, makes all decisions, and bears unlimited liability for all debts. The owner enjoys all profits and suffers all losses alone, distinguishing it from partnerships and companies.
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