Which key aspect characterizes a Sole Trader?

A Sole Trader is characterized by single ownership, meaning that one individual runs and owns the business. This structure allows the owner complete control over the operations, decision-making, and profits generated by the business. The simplicity of a sole trader model is appealing to many entrepreneurs, as it requires minimal legal formalities and allows for direct management without the complexities that come with multiple owners.

In contrast, other business structures involve multiple owners or partners, which introduces shared decision-making and potentially more complex legal frameworks. Limited liability is typically associated with corporations, where owners are protected from personal liability for business debts. Partnerships involve two or more individuals, differing fundamentally from the sole trader model of single ownership. Thus, the defining feature of a Sole Trader is indeed centered on its single ownership nature.