How is a "sole proprietor" defined?

A sole proprietor is defined as an individual who owns and operates a business independently, without the involvement of other partners or co-owners. This means that a sole proprietor is personally responsible for all aspects of the business, including any liabilities it may incur.

In this context, the correct definition emphasizes that a sole proprietor does not employ any other individuals, making it a one-person operation. This lack of additional employees distinguishes a sole proprietorship from other business structures, such as partnerships or corporations, that involve multiple individuals or shared ownership.

The other options introduce elements that do not align with the definition of a sole proprietor. Specifically, an individual who employs others suggests that there is a business structure involving multiple individuals or employees, which contradicts the independent nature of a sole proprietorship. A corporation with one owner represents a different legal structure altogether, which is not what defines a sole proprietorship. Lastly, a business entity with multiple employees would suggest a larger organization that operates beyond the scope of a sole proprietor, who operates solo without any formal employees.