Post Utme Lautech 2023 Commerce Question 21

Practice objective / multiple choice question 21 from the 2023 Post Utme Lautech Commerce examination.

Post Utme Lautech 2023 Commerce Objective / Multiple Choice

Question 21 POST_UTME_LAUTECH • 2023 • 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 is personally liable for all business debts and obligations.

C. The business is responsible for the owner's personal debts.

D. The owner's personal assets are not protected from business debts.

Correct Answer

Correct Option:

The owner is personally liable for all business debts and obligations.

About This Question

This is Post Utme Lautech 2023 Commerce Question 21. It is one of the objective questions from the 2023 Post Utme Lautech Commerce examination.

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