Fundamentals of Surveying (FS) Practice Exam

What type of corporation is owned by one individual?

1. Private corporation

2. Public corporation

3. Sole proprietorship

4. General partnership

The correct answer is: Sole proprietorship

The correct response to the question is that a sole proprietorship is owned by one individual. A sole proprietorship is a business structure where a single person is responsible for the entirety of the business's operations, profits, and liabilities. This type of ownership allows for complete control and decision-making power for the owner, and it is the simplest form of business entity, requiring minimal regulatory burden and administrative complexity. In contrast to a sole proprietorship, a private corporation is owned by a group of individuals or a company and does not sell shares to the public, and a public corporation issues shares that are traded on a public stock exchange, making it owned by multiple shareholders. A general partnership involves two or more individuals who share ownership and management responsibilities of a business. None of these alternatives reflect the concept of single ownership that defines a sole proprietorship.