What type of business is owned by one person who makes all of the decisions?

A sole proprietorship is a business structure owned and operated by a single individual. In this type of business, the owner has full control over all decision-making processes, which allows for quick and direct responses to opportunities and challenges. This structure is often chosen for its simplicity and ease of setup, as it does not require formal registration beyond obtaining the necessary licenses and permits.

The owner also retains all profits generated by the business, although they are personally responsible for all liabilities and debts incurred. This distinct characteristic of having full decision-making authority is what differentiates a sole proprietorship from other business structures, such as partnerships and corporations, where multiple individuals share decision-making responsibilities or ownership stakes.

Thus, a sole proprietorship is the appropriate answer as it encapsulates the nature of a business owned exclusively by one person who makes all decisions.