Final answer:
A business that is owned and run by a single individual is known as a sole proprietorship. This type of organization allows the owner to have full control over the business but also entails full personal liability for debts and obligations. Sole proprietorships are common among small businesses, and private companies can range from small enterprises to large corporations without publicly issued stock.
Step-by-step explanation:
A business organization that is privately owned by a single individual is called a sole proprietorship. Sole proprietorships are straightforward business entities where the individual owner is responsible for all aspects of the business, including debts and liabilities.
This type of business is contrasted with a partnership, where a business is owned and run by a group, and a corporation, which can be private without publicly issued stock but has a more complex structure.
Examples of large private corporations that operate without publicly issued stock include companies like Cargill, the Mars candy company, and the Bechtel engineering and construction firm. However, most private companies are relatively small, and sole proprietorships are one of the most common types for new businesses.