Which characteristic describes a sole trader?

A sole trader is characterized by being an individual who independently runs and owns a business. This model allows the sole trader complete control over all aspects of the business, including decision-making, profits, and liabilities. Unlike partnerships or corporations, a sole trader does not share ownership with others, which means they are not reliant on partners for management or financial decision-making. This structure is often simpler and more straightforward, making it an appealing option for many small businesses and freelancers.

In contrast to other options, the characteristics of a sole trader do not include shared ownership or partnership structures, such as in a partnership with multiple owners, nor do they involve the complexities of fundraising through initial public offerings. Additionally, while a sole trader can engage in charitable activities, the defining feature of being a sole trader is the independence and sole ownership of their commercial enterprise, not a primary focus on charitable work.