Post Utme Ksu 2023 Commerce Question 31

Practice objective / multiple choice question 31 from the 2023 Post Utme Ksu Commerce examination.

Post Utme Ksu 2023 Commerce Objective / Multiple Choice

Question 31 POST_UTME_KSU • 2023 • COMMERCE • objective

A sole trader's business is considered a separate legal entity from its owner. Discuss the implications of this statement on the sole trader's liability and taxation.

A. The sole trader's liability is limited to the business's assets, and taxation is based on the business's profits.

Correct Answer B. The sole trader's liability is unlimited, and taxation is based on the sole trader's personal income.

C. The sole trader's liability is limited to the business's assets, but taxation is based on the sole trader's personal income.

D. The sole trader's liability is unlimited, but taxation is based on the business's profits.

Correct Answer

Correct Option:

The sole trader's liability is unlimited, and taxation is based on the sole trader's personal income.

This is Post Utme Ksu 2023 Commerce Question 31. It is one of the objective questions from the 2023 Post Utme Ksu Commerce examination.

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