Red Seal Cosmetology Practice Exam

What describes a sole proprietor?

1. A corporate business owner

2. An individual owner and manager of a business

3. A manager of a franchise

4. A silent partner in a business

The correct answer is: An individual owner and manager of a business

A sole proprietor is an individual who owns and manages their own business. Option A, a corporate business owner, refers to someone who owns a share of a corporation but is not necessarily the sole proprietor. Option C, a manager of a franchise, is someone who oversees operations of a franchise business but may not necessarily be the sole proprietor. Option D, a silent partner in a business, is someone who invests in a business but does not have an active role in its management, thus they cannot be considered a sole proprietor. Only option B accurately describes a sole proprietor as an individual owner and manager of a business.