Kathy runs a business from her home. Not only is she the sole employee, she never leaves her home, performing all business functions in her pajamas in front of her computer. Her business consists of buying and then reselling various goods over the Internet. She is very successful with thousands of customers. In terms of regulation of commerce, how would you characterize her business?

Question

Business

Imogen

13 March, 05:41

Kathy runs a business from her home. Not only is she the sole employee, she never leaves her home, performing all business functions in her pajamas in front of her computer. Her business consists of buying and then reselling various goods over the Internet. She is very successful with thousands of customers. In terms of regulation of commerce, how would you characterize her business?

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Quentin Sexton · Answer 1

Kathy

Her business is a Sole Proprietorship or a sole person business.

Explanation:

The sole proprietorship is not a legal entity, but, a person who owns the business and is personally responsible for its debts. It is very simple to operate, as we can see from how Kathy is running her business from home.

A sole proprietorship usually works alone, does not employ others, and does not have any sort of a company like an LLC or corporation. Such a business is is owned and run by one person and there is no legal distinction between the owner and the business entity.