Post Utme Noun 2017 Commerce Question 22

Practice objective / multiple choice question 22 from the 2017 Post Utme Noun Commerce examination.

Post Utme Noun 2017 Commerce Objective / Multiple Choice
Question 22 POST_UTME_NOUN • 2017 • COMMERCE • objective
Post Utme Noun 2017 Commerce Question 22 diagram

A company has a sole trader business structure. Explain the advantages and disadvantages of this business structure, using a diagram to illustrate your answer.

Answer Options

A. The sole trader business structure has the advantage of being simple to set up and manage, but it has the disadvantage of being personally liable for business debts.
B. The sole trader business structure has the advantage of being able to make quick decisions, but it has the disadvantage of being limited in its ability to raise capital.
C. The sole trader business structure has the advantage of being able to keep profits, but it has the disadvantage of being personally liable for business debts.
Correct Answer D. The sole trader business structure has the advantage of being able to make quick decisions, but it has the disadvantage of being limited in its ability to raise capital and being personally liable for business debts.
Correct Answer
D
Correct Option:
The sole trader business structure has the advantage of being able to make quick decisions, but it has the disadvantage of being limited in its ability to raise capital and being personally liable for business debts.

About This Question

This is Post Utme Noun 2017 Commerce Question 22. It is one of the objective questions from the 2017 Post Utme Noun Commerce examination.

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