Post Utme Elizade University 2024 Commerce Question 6

Practice objective / multiple choice question 6 from the 2024 Post Utme Elizade University Commerce examination.

Post Utme Elizade University 2024 Commerce Objective / Multiple Choice
Question 6 POST_UTME_ELIZADE_UNIVERSITY • 2024 • 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 dissolved. Which of the following is a correct statement regarding the dissolution of a sole trader's business?

Answer Options

A. The business is automatically dissolved and its assets are distributed among the creditors.
Correct Answer B. The business is automatically dissolved and its assets are distributed among the owner's heirs.
C. The business is not automatically dissolved and its assets are distributed among the owner's heirs.
D. The business is not automatically dissolved and its assets are distributed among the creditors.
Correct Answer
B
Correct Option:
The business is automatically dissolved and its assets are distributed among the owner's heirs.

About This Question

This is Post Utme Elizade University 2024 Commerce Question 6. It is one of the objective questions from the 2024 Post Utme Elizade University Commerce examination.

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