What is a nonemployer business according to the Department of Commerce?

Prepare for the POB Business Test with flashcards and multiple choice questions. Each question offers hints and comprehensive explanations. Ensure you're ready for your exam!

A nonemployer business, according to the Department of Commerce, refers to a business owned solely by one individual without any additional staff. This type of business is often operated by sole proprietors who manage their ventures independently, providing services or products without hiring employees. Nonemployer businesses are significant in the economy because they represent a substantial portion of all enterprises, particularly in sectors like arts, entertainment, and professional services.

The other options describe different business structures that involve employing staff or having multiple owners or shareholders, which do not fit the definition of a nonemployer business. Therefore, the identification of option B as the correct answer aligns perfectly with the established definition of a nonemployer business.

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