Post Utme Ksu 2018 Commerce Question 16

Practice objective / multiple choice question 16 from the 2018 Post Utme Ksu Commerce examination.

Post Utme Ksu 2018 Commerce Objective / Multiple Choice
Question 16 POST_UTME_KSU • 2018 • 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

Correct Answer A. The business is automatically dissolved and the assets are distributed among the creditors.
B. The business is automatically dissolved and the assets are distributed among the shareholders.
C. The business is not automatically dissolved and the assets are distributed among the creditors.
D. The business is not automatically dissolved and the assets are distributed among the shareholders.
Correct Answer
A
Correct Option:
The business is automatically dissolved and the assets are distributed among the creditors.

About This Question

This is Post Utme Ksu 2018 Commerce Question 16. It is one of the objective questions from the 2018 Post Utme Ksu Commerce examination.

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