Post Utme Ims U 2025 Commerce Question 16

Practice objective / multiple choice question 16 from the 2025 Post Utme Ims U Commerce examination.

Post Utme Ims U 2025 Commerce Objective / Multiple Choice
Question 16 POST_UTME_IMS_U • 2025 • COMMERCE • objective

A sole trader's business is considered a separate legal entity from its owner. However, in the event of a lawsuit, the owner's personal assets may be at risk. What is the primary reason for this vulnerability?

Answer Options

A. Limited liability protection
B. Taxation benefits
C. Separate legal entity
Correct Answer D. Personal guarantee
Correct Answer
D
Correct Option:
Personal guarantee

About This Question

This is Post Utme Ims U 2025 Commerce Question 16. It is one of the objective questions from the 2025 Post Utme Ims U Commerce examination.

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