Post Utme Coal City University 2024 Commerce Question 20

Practice objective / multiple choice question 20 from the 2024 Post Utme Coal City University Commerce examination.

Post Utme Coal City University 2024 Commerce Objective / Multiple Choice
Question 20 POST_UTME_COAL_CITY_UNIVERSITY • 2024 • COMMERCE • objective

A sole trader is considering incorporating their business. Using the concept of limited liability, explain why incorporation provides greater protection for the sole trader's personal assets.

Answer Options

A. Because incorporation limits the sole trader's personal liability to the amount invested in the business
Correct Answer B. Because incorporation provides greater protection for the sole trader's personal assets
C. Because incorporation reduces the sole trader's tax liability
D. Because incorporation increases the sole trader's personal liability
Correct Answer
B
Correct Option:
Because incorporation provides greater protection for the sole trader's personal assets

About This Question

This is Post Utme Coal City University 2024 Commerce Question 20. It is one of the objective questions from the 2024 Post Utme Coal City University Commerce examination.

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