Final answer:
A worker who is self-employed is referred to as a sole proprietor or an entrepreneur. The sole proprietorship model involves a single owner who handles all operations and is accountable for all business's debts, without being a separate legal entity from the business. Such an individual earns directly from the profits rather than receiving a wage or salary.
Step-by-step explanation:
A worker who is self-employed is commonly referred to as a sole proprietor or an entrepreneur. A sole proprietorship is a business structure whereby a single individual owns, operates, and is responsible for all aspects of the business. This form of business entity does not create a separate legal entity; rather, the business and the owner are legally the same. This means the owner is entitled to all profits but is also personally liable for all the business's debts and obligations.
Many new businesses begin as sole proprietorships due to their simple and straightforward nature. These business owners do not receive a standard wage or salary but earn income directly from their business's profits. Entrepreneurship is often associated with this business model, which can encompass a wide range of activities, from professional services such as law and dentistry to trades like construction or landscaping. The essence of being self-employed lies in the autonomy and responsibility that comes with operating one's own business.