Post Utme Mountain Top University 2019 Commerce Question 1

Practice objective / multiple choice question 1 from the 2019 Post Utme Mountain Top University Commerce examination.

Post Utme Mountain Top University 2019 Commerce Objective / Multiple Choice
Question 1 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2019 • COMMERCE • objective

A sole trader's business is considered a separate legal entity from its owner. What is the primary reason for this separation?

Answer Options

Correct Answer A. To protect the owner's personal assets from business liabilities
B. To enable the business to enter into contracts independently
C. To facilitate the transfer of ownership to another individual
D. To simplify tax compliance for the business
Correct Answer
A
Correct Option:
To protect the owner's personal assets from business liabilities

About This Question

This is Post Utme Mountain Top University 2019 Commerce Question 1. It is one of the objective questions from the 2019 Post Utme Mountain Top University Commerce examination.

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