Arianne has a passion for designing clothes and decides to open her own clothing store. She starts it by taking personal loans from family and friends, and hires a few people to run the store She maintains a tight control over costs as she does not want to incur further debts. Arianne's store is an example of a ___.

Question

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Arianne's store is a proprietorship because she is the sole owner of the business and has taken personal loans from family and friends. She maintains control over costs, indicating that she is the only one making decisions for the business. A proprietorship is the simplest form of business organization and is owned by one individual.

Arianne Has a Passion for Designing Clothes and Decides to Open