Sole proprietorship: an unincorporated business organization that only has one owner. Any obligation of the business is the owner"s personal obligation. A sole proprietorship has what is known in law as unlimited liability. Regardless of what the owner has invested in his business, his personal assets not just the businesses assets may be seized to pay the outstanding debts of the business. All the profits after taxes accrue to the sole proprietor alone. The sole proprietor can make all business decisions. Should the owner die, the business is terminated. In other words, the proprietorship has a limited lifespan. Few people are good at everything, yet the sole proprietor is responsible for every aspect of the business, from buying and selling to financing and advertising. Owner"s absence due to illness or incapacity can adversely affect the business because so much of the enterprise revolves around this one person.