What type of business structure typically includes ownership by a single individual?

The type of business structure that includes ownership by a single individual is a sole proprietorship. This structure is characterized by its simplicity and ease of establishment, as it involves one person who owns and operates the business. The sole proprietor has complete control over all decisions, receives all profits, and is personally liable for any debts incurred by the business.

Sole proprietorships are often favored by small business owners due to the minimal regulatory requirements and straightforward tax implications, where income is reported on the individual's personal tax return. This structure allows for a direct connection between the owner’s personal finances and the business, making it crucial for potential owners to understand the responsibilities involved.

In contrast, a corporation involves multiple owners (shareholders) and is a legally distinct entity, which limits personal liability. A partnership, on the other hand, consists of two or more individuals sharing ownership and responsibilities, while a cooperative is owned and operated by a group of individuals for their mutual benefit. Thus, sole proprietorship stands out for its individual ownership structure, highlighting why this choice is correct.