Post Utme Covenant University 2020 Commerce Question 20

Practice objective / multiple choice question 20 from the 2020 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2020 Commerce Objective / Multiple Choice
Question 20 POST_UTME_COVENANT_UNIVERSITY • 2020 • COMMERCE • objective

A sole trader's business is considered a separate legal entity from its owner. However, the owner is personally liable for the business's debts. Which of the following best describes the relationship between a sole trader and their business?

Answer Options

A. Separate legal entity with limited liability
B. Separate legal entity with unlimited liability
Correct Answer C. No legal entity with unlimited liability
D. No legal entity with limited liability
Correct Answer
C
Correct Option:
No legal entity with unlimited liability

About This Question

This is Post Utme Covenant University 2020 Commerce Question 20. It is one of the objective questions from the 2020 Post Utme Covenant University Commerce examination.

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