Proprietorship (Noun)
Meaning
An unincorporated business owned by a single person who is responsible for its liabilities and entitled to its profits.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The small bakery was a proprietorship owned and operated by a single individual who made all the business decisions.
- As the sole proprietor of the consulting firm, she was personally responsible for all its debts and obligations.
- The proprietorship allowed him to keep all the profits from his successful online business, but also meant he had to absorb all the losses.
- After working for several years as an employee, she decided to start her own proprietorship as a freelance writer.
- The tax laws governing proprietorships were complex and required careful planning to minimize liabilities and maximize profits.