What best describes a sole proprietorship?

A sole proprietorship is best described as a business structure owned and operated by a single individual. This type of business is characterized by the fact that the owner has complete control over all decisions and operations of the business. The owner is responsible for all profits and losses, and the business income is typically reported on the owner's personal tax return, making it simpler from an accounting perspective.

This structure is the simplest form of business ownership, which allows for ease of setup and operation, as it does not involve complex regulations or filings that apply to corporations or partnerships. The straightforward nature of a sole proprietorship also means that the owner retains all profits, but it also comes with the drawback of unlimited personal liability, where personal assets may be at risk if the business incurs debt or faces legal issues.

The other options describe different business structures that do not fit the definition of a sole proprietorship. For instance, partnerships involve multiple individuals, incorporated entities provide limited liability protection, and publicly traded companies are owned by shareholders and operate on a different level of regulation and complexity.