A business organisation that is owned and controlled by a single individual is known as which of the following?

Introduction / Context:
This question relates to basic forms of business organisation. Understanding the differences between a sole proprietorship, partnership, company, and non profit entity is very important for commerce, business studies, and general knowledge about the Indian economy. The most simple and common form of business ownership is the one owned by a single individual.

Given Data / Assumptions:

• The business has only one owner.
• The owner controls and manages the business.
• There is no mention of incorporation or separate legal personality.

Concept / Approach:
A sole proprietorship is a business owned, financed, and controlled by one person. The owner gets all the profits and bears all the risks. In contrast, partnerships involve two or more persons. Companies such as private limited or public limited companies have separate legal identity and can have many shareholders. Non profit organisations are set up for charitable or social purposes and do not distribute profits to owners in the usual way.

Step-by-Step Solution:
Step 1: Focus on the phrase owned by one person, which is the key clue.Step 2: Recall that a sole proprietorship is defined exactly in these terms.Step 3: Recognise that a partnership by definition must have more than one owner.Step 4: Limited liability companies and public companies involve registration and can have many shareholders, not just one individual owner.Step 5: Therefore the correct answer is sole proprietorship.

Verification / Alternative check:
Examples of sole proprietorships include many small retail shops, neighbourhood grocery stores, and small service providers such as local tailors or small repair shops. In these cases, a single individual usually takes all major decisions and receives the profit. Larger firms such as banks or big manufacturing companies are almost always organised as partnerships or companies, which confirms the distinction.

Why Other Options Are Wrong:
Non profit organisations are typically governed by a board or trust and are not described simply as businesses owned by one person. Limited liability companies and public limited companies have separate legal personality and shareholder structures, even if at the very beginning they may have a small number of shareholders. Partnership firms, by definition, involve at least two persons agreed to do business and share profits. None of these match the simple one person ownership described in the question.

Common Pitfalls:
Sometimes learners confuse sole proprietorship with single person company, which is a separate legal concept created under company law, where a single person can form a company with limited liability. In basic business studies questions, however, the phrase business owned by one person almost always refers to the traditional sole proprietorship. Always read the level of the question; if it is introductory, simple forms like sole proprietorship and partnership are usually tested.

Final Answer:
A business owned and controlled by one person is called a sole proprietorship.