Post Utme Bells University 2020 Commerce Question 31

Practice objective / multiple choice question 31 from the 2020 Post Utme Bells University Commerce examination.

Post Utme Bells University 2020 Commerce Objective / Multiple Choice
Question 31 POST_UTME_BELLS_UNIVERSITY • 2020 • COMMERCE • objective

A sole trader's business is considered a separate legal entity from its owner. Discuss the implications of this separation on the owner's personal liability.

Answer Options

Correct Answer A. The owner is personally liable for all business debts and obligations.
B. The owner's personal assets are protected from business creditors.
C. The business is responsible for its own taxes, but the owner is responsible for their personal taxes.
D. The owner can transfer ownership of the business to another person without affecting their personal liability.
Correct Answer
A
Correct Option:
The owner is personally liable for all business debts and obligations.

About This Question

This is Post Utme Bells University 2020 Commerce Question 31. It is one of the objective questions from the 2020 Post Utme Bells University Commerce examination.

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