Mel owns an auto repair shop. He started the business with a personal loan and is wholly responsible for repaying it. Mel also needs to pay personal income tax on the profits generated from the business. Mel's business is an example of a(n)

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Mel's business is an example of a sole proprietorship. Sole proprietorships are typically small businesses employing fewer than 50 people. The sole proprietor has unlimited liability in meeting the debts of the business. Profits from sole proprietorships are considered personal income and are taxed at individual tax rates.

Mel Owns an Auto Repair Shop