Post Utme Crawford University 2021 Commerce Question 6

Practice objective / multiple choice question 6 from the 2021 Post Utme Crawford University Commerce examination.

Post Utme Crawford University 2021 Commerce Objective / Multiple Choice
Question 6 POST_UTME_CRAWFORD_UNIVERSITY • 2021 • COMMERCE • objective

A sole trader's business is considered a separate legal entity from its owner. However, in the event of the owner's death, the business is automatically wound up. Which of the following is a correct statement regarding the sole trader's business?

Answer Options

Correct Answer A. The business is dissolved and its assets are distributed among the creditors.
B. The business is transferred to the deceased's spouse.
C. The business is continued by the deceased's heirs.
D. The business is sold to a third party.
Correct Answer
A
Correct Option:
The business is dissolved and its assets are distributed among the creditors.

About This Question

This is Post Utme Crawford University 2021 Commerce Question 6. It is one of the objective questions from the 2021 Post Utme Crawford University Commerce examination.

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