Which description matches a business owned and operated by one person?

Prepare for the Chiropractic Business Midterm Exam with comprehensive materials, including multiple choice questions and detailed explanations to enhance your understanding. Ace your exam with confidence!

A business owned and operated by a single person is a sole proprietorship. This form is defined by one owner who makes all decisions and keeps all profits, but also bears all debts and obligations personally. It’s the simplest and cheapest way to start a business: no separate legal entity is created, so there’s less paperwork and formal structure. Taxes flow through to the owner’s personal return, so there’s no corporate tax, but the owner has unlimited personal liability. If the owner quits or passes away, the business often ends. Because it is run by one person, it is distinct from a partnership (multiple owners), a corporation (a separate legal entity with shareholders), or an LLC (offers liability protection with more structure).