Final answer:
The term 'capital' is associated with a sole proprietorship, which is a business owned by one person who is wholly responsible for its debts and benefits from all profits.
Step-by-step explanation:
The term associated with the business structure of a sole proprietorship is capital. A sole proprietorship is a business owned and managed by a single individual, and it is not a separate legal entity from the owner. This means the owner is directly responsible for all the debts and obligations of the business as well as entitled to all the profits. Unlike a limited liability company (LLC) or a corporation, which offer limited liability protection to their owners, a sole proprietor must use their own capital or funds to finance the business and may be required to secure loans with their personal assets.
Sole proprietorships are often favored for their simplicity, direct control, and the ease with which they can be established. However, they come with the disadvantage of unlimited liability, meaning that in case of business debts or legal issues, the owner's personal assets can be pursued by creditors. This is different from structures like LLCs or corporations where personal liability is limited.
It's important for an entrepreneur considering a sole proprietorship to understand the financial and legal responsibilities that come with it. Generating capital, dealing with liabilities, and managing the business's operations are all roles that fall squarely on the shoulders of the sole proprietor.