The owner's financial interest in a business is called what?

• A. Cost
• B. Transaction
• C. Proprietorship
• D. Cash Receipts

Answer: (C)

Ownership structure defines the owner's financial stake, and when a single person owns a business, that arrangement is called a sole proprietorship. This term signals that the owner has a direct financial interest and control, with profits and losses flowing straight to them. The other terms describe actions or amounts in transactions—cost is what you pay, a transaction is any exchange, and cash receipts are money coming in—not the owner's ownership in the business.