Post Utme Lautech 2018 Commerce Question 33

Practice objective / multiple choice question 33 from the 2018 Post Utme Lautech Commerce examination.

Post Utme Lautech 2018 Commerce Objective / Multiple Choice

Question 33 POST_UTME_LAUTECH • 2018 • COMMERCE • objective

A sole trader's business is considered a separate legal entity from its owner. Which of the following is a consequence of this separation?

Answer Options

Correct Answer A. The owner is personally liable for the business's debts.

B. The business is taxed separately from its owner.

C. The owner has unlimited liability for the business's actions.

D. The business is not required to file tax returns.

Correct Answer

Correct Option:

The owner is personally liable for the business's debts.

About This Question

This is Post Utme Lautech 2018 Commerce Question 33. It is one of the objective questions from the 2018 Post Utme Lautech Commerce examination.

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