In a solo proprietorship, decisions are made by the

Step 1: Analyze the question The question asks who makes decisions in a solo proprietorship. The key term is "solo," which means one person.

Step 2: Explain the concept A solo proprietorship (sole trader) is a business owned, financed, and usually managed by one person. Its main features are:

• One owner who supplies the capital
• Easy to start and easy to close
• The owner takes all the profit and bears all the losses
• Unlimited liability, so the owner's personal assets can be used to pay the business's debts
• The owner makes all the decisions, with little or no need to consult anyone

Step 3: Test each option

• A. Board of directors: This belongs to a limited liability company, not a one-person business.
• B. Government: The government makes decisions in public enterprises, not in a private sole trader's business.
• C. Management: A separate management team is typical of large firms. In a sole proprietorship, the owner is the manager.
• D. Owner: Correct. The owner controls and decides everything in the business.
• E. Shareholders: Shareholders exist in companies. A sole proprietorship has no shares.

Step 4: Answer The correct option is D. owner.

Exam tip: Match the business type to its decision-maker:

• Sole proprietorship → owner
• Partnership → partners
• Limited company → board of directors (elected by shareholders)
• Public corporation → government-appointed board