A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business.
Q. Is a business owned by a single individual?
A business owned and managed by a single individual. The oldest and most common form of business organization. The legally bound obligation to pay debts. A sole proprietorship ends with the life of the owner.
Q. What is a business owned by an individual or group called?
A single person who owns and runs a business is commonly known as a sole proprietor, whether that person owns it directly or through a formally organized entity.
Q. Which type of organization is owned by one or more companies or organizations?
Stockholders’ equity The owners’ interest in a corporation. Sole Proprietorships are business entities owned by one single person. Partnerships are business entities owned by at least two people. Corporations are business entities owned by one person or many people called shareholders.
Q. What is the most important factor to consider when opening a skin care business?
Business Basics, Chapter 3, Pivot Point Esthetics
| Term | Definition |
|---|---|
| Location | Most important factor in opening a skin care business. |
| Market Need | Determining how many other skin care centers and estheticians are in the area is the first step in gauging. What are service offered and what are their prices. |
Q. Which types of business can the owner’s be held to 100% personal liability?
Sole Proprietorships are the most common form of legal structure for small businesses.
- Taxation: A sole Proprietorship has pass-through taxation.
- Liability: The Owner of the sole proprietorship has unlimited personal liability for any liabilities the business incurs.
