Final answer:
The statement refers to a sole proprietorship, where one person owns and operates the business, keeps all profits, but also bears all debts and liabilities. It is not a separate legal entity, so it may not continue without the owner.
Step-by-step explanation:
The business structure where profits and losses are not distributed and there is no shared decision-making, and which might be passed to relatives but without the guarantee of its continued existence, refers to a sole proprietorship. This type of business is owned and operated by one person. The sole proprietor has complete control of the business and is entitled to all the profits, but is also fully responsible for all debts and liabilities. They are not required to pay special taxes; taxes are paid on the personal income from the business. If the owner chooses to close the business or if they pass away, the company does not inherently continue, as it is not a separate legal entity from the owner. In contrast, a partnership involves shared decision-making and profits, and a corporation is a separate entity that can distribute profits to shareholders and continue to exist beyond the involvement of its founders.