Control of the single-owner business’s risks and rewards rests with the owner. He or she does not share control with partners, shareholders, or boards of directors. If the business is small and has few employees, the owner should be able to stay small and unencumbered. The owner is close enough to the operations of the business to make most of the major decisions. In general, control is limited only by the laws of the community, the requirements of creditors, or the requirements of the major brand name company if the business is a franchise.

 LO.1