What distinguishes pie charts from donut charts in Power BI?

The distinguishing feature of donut charts compared to pie charts is indeed that a donut chart is essentially a pie chart with a hollowed-out center. This design not only creates a visually appealing effect but also can enhance readability. The hollow center can provide a space for additional information, like a title or a percentage, which can add to the utility of the chart.

Moreover, while both charts are used to show proportions of a whole, the donut chart often allows for better data visualization in situations where labels might overlap in a traditional pie chart. By having that space in the middle, it frequently helps in reducing clutter and improving the overall readability of the chart, making it easier for viewers to interpret the data.

Other options exploring aspects of data display in pie vs. donut charts do not accurately reflect the primary differences. For instance, pie charts are certainly capable of representing multiple data categories, and donut charts can also represent multiple categories, thus making the claim that donut charts can only represent a single category inaccurate.