Which of the following describes a Sole Trader?

A Sole Trader, often referred to as a sole proprietor, is an individual who owns and operates a business independently. This business structure is characterized by the fact that there is no legal distinction between the owner and the business; the sole trader is personally responsible for all debts and obligations of the business. In essence, the sole trader makes all decisions regarding the business's operations, retains all profits, and bears all risks involved.

This structure is simpler and requires fewer administrative tasks compared to other business forms, such as corporations or partnerships. For individuals who want full control over their operations and are comfortable managing risks personally, being a sole trader can be an attractive option.

In contrast, other choices describe different business structures that involve multiple owners or entities, which do not align with the definition of a sole trader. A sole trader operates independently and is not reliant on partners or shareholders, making it a unique and distinct business model.