Post Utme Babcock University 2023 Commerce Question 33

Practice objective / multiple choice question 33 from the 2023 Post Utme Babcock University Commerce examination.

Post Utme Babcock University 2023 Commerce Objective / Multiple Choice
Question 33 POST_UTME_BABCOCK_UNIVERSITY • 2023 • COMMERCE • objective

A sole trader's business is not separate from their personal life. Which of the following is a correct statement regarding the liability of a sole trader?

Answer Options

A. A sole trader's liability is limited to the amount of capital invested in the business.
Correct Answer B. A sole trader's liability is unlimited, meaning they can be held personally responsible for business debts.
C. A sole trader's liability is limited to the amount of assets owned by the business.
D. A sole trader's liability is limited to the amount of profits earned by the business.
Correct Answer
B
Correct Option:
A sole trader's liability is unlimited, meaning they can be held personally responsible for business debts.

About This Question

This is Post Utme Babcock University 2023 Commerce Question 33. It is one of the objective questions from the 2023 Post Utme Babcock University Commerce examination.

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