Post Utme Abu 2021 Commerce Question 31

Practice objective / multiple choice question 31 from the 2021 Post Utme Abu Commerce examination.

Post Utme Abu 2021 Commerce Objective / Multiple Choice
Question 31 POST_UTME_ABU • 2021 • COMMERCE • objective

A sole trader's business is considered a separate legal entity from its owner. However, the owner's personal assets are not protected in case of business debts. What is the primary reason for this lack of protection?

Answer Options

A. The sole trader's business is not registered as a separate entity.
Correct Answer B. The sole trader's personal assets are not separate from the business assets.
C. The sole trader's business is not insured against debts.
D. The sole trader's business is not a limited liability company.
Correct Answer
B
Correct Option:
The sole trader's personal assets are not separate from the business assets.

About This Question

This is Post Utme Abu 2021 Commerce Question 31. It is one of the objective questions from the 2021 Post Utme Abu Commerce examination.

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