Lucia owns her own dog walking business and has several employees. She filed no legal paperwork and has no partners. Lucia's business is a(n) ________

A) limited liability company
B) corporation
C) sole proprietorship
D) separate legal entity
E) illegal endeavor

C
Explanation: C) A sole proprietorship is a business owned, and usually operated, by a single individual. No legal paperwork is necessary to establish a sole proprietorship; therefore, many small-business owners such as Lucia may be sole proprietors without even knowing it. Moreover, sole proprietorships can have any number of employees as long as there is only one owner. It is not considered a separate entity apart from the owner, like corporations are, and therefore, Lucia would have unlimited liability in her business.