Post Utme Joseph Ayo Babalola University 2019 Commerce Question 26

Practice objective / multiple choice question 26 from the 2019 Post Utme Joseph Ayo Babalola University Commerce examination.

Post Utme Joseph Ayo Babalola University 2019 Commerce Objective / Multiple Choice

Question 26 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2019 • COMMERCE • objective

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

C. The business is not considered a separate entity from its owner.

D. The owner's personal assets are not affected by business debts.

Correct Answer

Correct Option:

The owner's personal assets are liable for business debts.

About This Question

This is Post Utme Joseph Ayo Babalola University 2019 Commerce Question 26. It is one of the objective questions from the 2019 Post Utme Joseph Ayo Babalola University Commerce examination.

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