Post Utme Crawford University 2020 Commerce Question 36

Practice objective / multiple choice question 36 from the 2020 Post Utme Crawford University Commerce examination.

Post Utme Crawford University 2020 Commerce Objective / Multiple Choice

Question 36 POST_UTME_CRAWFORD_UNIVERSITY • 2020 • COMMERCE • objective

A sole trader's business is considered a separate legal entity from its owner. Discuss the implications of this separation for 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 pay business debts.

C. The business is not required to pay taxes on its profits.

D. The business is not required to file annual returns with the relevant authorities.

Correct Answer

Correct Option:

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

About This Question

This is Post Utme Crawford University 2020 Commerce Question 36. It is one of the objective questions from the 2020 Post Utme Crawford University Commerce examination.

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