Post Utme Joseph Ayo Babalola University 2017 Commerce Question 31

Practice objective / multiple choice question 31 from the 2017 Post Utme Joseph Ayo Babalola University Commerce examination.

Post Utme Joseph Ayo Babalola University 2017 Commerce Objective / Multiple Choice
Question 31 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2017 • COMMERCE • objective

A sole trader's business is considered a separate legal entity from its owner. Discuss this statement with reference to the concept of limited liability.

Answer Options

Correct Answer A. True, as a sole trader's business is not responsible for the owner's personal debts.
B. False, as a sole trader's business is responsible for the owner's personal debts.
C. Limited liability is not relevant to sole traders.
D. Sole traders have unlimited liability.
Correct Answer
A
Correct Option:
True, as a sole trader's business is not responsible for the owner's personal debts.

About This Question

This is Post Utme Joseph Ayo Babalola University 2017 Commerce Question 31. It is one of the objective questions from the 2017 Post Utme Joseph Ayo Babalola University Commerce examination.

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