What is assumed if no business structure is specified?

• A. Corporation
• B. Partnership
• C. Limited liability company
• D. Sole proprietorship

Answer: (D)

When no business structure is specified, the default is a sole proprietorship. This is the simplest setup, created automatically when a single person starts a business without filing incorporation or formation documents. In this arrangement, the owner and the business are the same legal entity, so they bear unlimited personal liability for business debts. The business income is reported on the owner’s personal tax return, and there are relatively few formal requirements to get started. The other options—corporation, limited liability company, and partnership—require explicit formation with appropriate filings and governance arrangements, so they aren’t the assumed default when nothing is specified.