Paper 2 · sole proprietorship
State the term for a person who owns and runs a business alone, keeping all the profits but bearing unlimited personal liability for its debts.
Model answer
sole proprietor
Also accepted: sole trader, sole proprietorship, sole tradership
Explanation: A sole proprietor is the business in law, so there is no separation between the owner's money and the firm's. That is why all the profit belongs to the owner and why creditors may claim against the owner's private property if the business cannot pay.
Derived from ZIMSEC Business Enterprise Skills Paper 2 (Case Study), Specimen Paper, 2 hours 15 minutes edition, Q1