Paper 2 · sole proprietor
State the term for a business owned and run by one person, who provides the capital, keeps all the profit and is personally liable without limit for the debts of the business.
Model answer
sole proprietor
Also accepted: sole trader, sole proprietorship, sole traders, one person business
Explanation: A sole proprietor owns the business alone. The business has no legal identity separate from the owner, which is why the owner's personal assets can be taken to settle business debts, and why the business ends if the owner dies or withdraws.
Derived from ZIMSEC Business Enterprise Skills Paper 2, Nov 2021, Q1