Post Utme Nile University 2022 Commerce Question 16

Practice objective / multiple choice question 16 from the 2022 Post Utme Nile University Commerce examination.

Post Utme Nile University 2022 Commerce Objective / Multiple Choice

Question 16 POST_UTME_NILE_UNIVERSITY • 2022 • 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's personal liability is increased due to the business's separate legal entity.

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

D. The business's separate legal entity has no impact on the owner's personal liability.

Correct Answer

Correct Option:

The owner's personal liability is increased due to the business's separate legal entity.

About This Question

This is Post Utme Nile University 2022 Commerce Question 16. It is one of the objective questions from the 2022 Post Utme Nile University Commerce examination.

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