An individual who may employ other people but who owns and operates the business, they have unlimited liability.

• A. Sole Trader
• B. Partnership
• C. Private Sector
• D. Sleeping Partner

Answer: (A)

Unlimited liability means the owner is personally responsible for all the debts of the business, so personal assets could be at risk. An individual who owns and runs the business and may hire employees fits a sole trader. In a sole trader, there’s no legal separation between the owner and the business, so the owner bears all losses and keeps all profits. The other options aren’t a match because a partnership involves more than one owner, the private sector is a sector rather than a business form, and a sleeping partner is someone who invests in a partnership but does not actively manage the business (and would still have liability as a partner).