Which of the following statements about a sole proprietorship is true?

A sole proprietorship is a type of business entity owned and operated by a single individual. One of the defining characteristics of this structure is that the owner has complete control over the business, which includes the flexibility to sell, alter, or exchange the business as they see fit. This means that the owner can make decisions about the business's future without needing to consult with partners or other stakeholders.

In contrast to a corporation or a partnership, where there may be restrictions or formalities regarding the transfer of ownership, a sole proprietorship can be easily modified according to the owner's preferences. This inherent flexibility is beneficial for entrepreneurs who want to have full autonomy over their business operations.

The other statements regarding limited liability, partnership requirements, and responsibility for debts do not apply to sole proprietorships since the owner retains full personal liability for business debts and obligations. This further highlights the unique nature of a sole proprietorship compared to other business structures.