What is the term for a business conducted in a dwelling primarily used as a residence?

The term that defines a business conducted in a dwelling primarily used as a residence is home-based business. This refers specifically to enterprises that operate from the home rather than a separate commercial location, allowing homeowners to engage in business activities while utilizing their residential space.

Home-based businesses can encompass various activities, such as freelance work, consulting, or crafting, provided they comply with local zoning laws and homeowners' association regulations. The nature of these businesses typically involves minimal alteration to the home and limited foot traffic, ensuring that the primary use of the dwelling as a residence remains intact.

In contrast to the correct answer, the term "commercial occupancy" refers to properties specifically designated for business use and would not typically describe a residence. "Incidental occupancy" pertains to situations where a minor or temporary business activity occurs within a residential setting but still does not capture the broader notion of a home-based business. "Private enterprise" is a general term that applies to any privately owned business and does not specifically relate to the location of the business, which makes it less precise for this context.