Final answer:
The owner of a sole proprietorship has complete control over the business, including all its income and decisions. They can start and close a business as they wish but must also bear unlimited liability for all debts and obligations.
Step-by-step explanation:
The owner of a sole proprietorship has complete control over the business and can make decisions on the spot without anyone else's approval. This form of business organization allows the owner to maintain complete control, including controlling all income of the business. Sole proprietorships are often chosen by individuals who want to be their own boss and have the final say in business matters, without the need to consult with partners or a board of directors.
In a sole proprietorship, the owner is not only entitled to all the profits generated by the business but is also responsible for all the debts and liabilities. This means that the owner has unlimited liability, which is a major concern for sole proprietors since it personally exposes them to any debts and obligations the business incurs.
A vast majority of new businesses start as sole proprietorships because they are easy to form and provide the owner with the autonomy to manage the business. However, they also need to be prepared to assume all risks involved, including attracting and managing employees, and dealing with any financial responsibilities on their own, as the business is not a separate legal entity.