Which of the following best describes a sole proprietorship?

A sole proprietorship is defined as a business that is owned and operated by a single individual. This structure allows the owner to have complete control over decision-making and the operation of the business. As there are minimal legal regulations governing sole proprietorships, the owner has the freedom to manage the business as they see fit. This simplicity in structure is a significant advantage for many entrepreneurs as it allows for direct profit retention and minimal formalities regarding setup and operation.

In contrast, a partnership involves two or more individuals working together, which does not apply to a sole proprietorship. A corporation, characterized by shareholder ownership and the ability to trade shares publicly, is a distinctly different legal entity that offers limited liability but lacks the singular ownership aspect of a sole proprietorship. Similarly, a cooperative's structure is designed for members to work together for mutual benefit and profit-sharing, which diverges from the individualized ownership of a sole proprietorship. Therefore, the definition provided aligns perfectly with the nature and characteristics of a sole proprietorship, making it the best description among the choices available.