Post Utme Bowen University 2024 Commerce Question 31

Practice objective / multiple choice question 31 from the 2024 Post Utme Bowen University Commerce examination.

Post Utme Bowen University 2024 Commerce Objective / Multiple Choice

Question 31 POST_UTME_BOWEN_UNIVERSITY • 2024 • 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

A. The owner's personal assets are protected from business debts.

Correct Answer B. The owner's personal assets are at risk of being seized to settle business debts.

C. The business is responsible for the owner's personal debts.

D. The owner's personal debts are responsible for the business's liabilities.

Correct Answer

Correct Option:

The owner's personal assets are at risk of being seized to settle business debts.

About This Question

This is Post Utme Bowen University 2024 Commerce Question 31. It is one of the objective questions from the 2024 Post Utme Bowen University Commerce examination.

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