Post Utme Abu 2020 Commerce Question 36

Practice objective / multiple choice question 36 from the 2020 Post Utme Abu Commerce examination.

Post Utme Abu 2020 Commerce Objective / Multiple Choice

Question 36 POST_UTME_ABU • 2020 • COMMERCE • objective

A sole trader's business is considered a separate legal entity from its owner. Which of the following is a consequence of this separation?

Correct Answer A. The owner is personally liable for the business's debts.

B. The business is taxed separately from its owner.

C. The owner has unlimited liability for the business's actions.

D. The business is not required to file its own tax returns.

Correct Answer

Correct Option:

The owner is personally liable for the business's debts.

This is Post Utme Abu 2020 Commerce Question 36. It is one of the objective questions from the 2020 Post Utme Abu Commerce examination.

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows

Chat with Support