Which term describes a business owned and operated by one individual?

The term that describes a business owned and operated by one individual is "sole trader." This business structure is characterized by a single person being responsible for all aspects of the business, including profits, losses, and liabilities. The sole trader has complete control over the operations and decision-making processes of the business, allowing for flexibility and independence.

This structure is particularly common for small businesses and freelancers because it is easy to establish and requires less formal registration compared to other business types. The owner retains all profits, although they also bear the full risk of any debts or losses incurred by the business.

In contrast, a private limited company involves multiple shareholders, and a partnership consists of two or more individuals sharing ownership and responsibilities. A medium enterprise refers to a specific size classification of a business, not a type of ownership structure. Therefore, the designation of a sole trader is distinctly applicable to an individual operating their own business independently.