Post Utme Noun 2025 Commerce Question 11

Practice objective / multiple choice question 11 from the 2025 Post Utme Noun Commerce examination.

Post Utme Noun 2025 Commerce Objective / Multiple Choice
Question 11 POST_UTME_NOUN • 2025 • COMMERCE • objective

A sole trader's business is considered a separate legal entity from its owner. However, in the event of a lawsuit, the owner's personal assets may be at risk. Which of the following is a potential consequence of this situation?

Answer Options

A. The owner's personal assets are protected from business liabilities.
Correct Answer B. The owner's personal assets may be seized to settle business debts.
C. The business is automatically dissolved in the event of a lawsuit.
D. The owner's personal assets are not affected by business lawsuits.
Correct Answer
B
Correct Option:
The owner's personal assets may be seized to settle business debts.

About This Question

This is Post Utme Noun 2025 Commerce Question 11. It is one of the objective questions from the 2025 Post Utme Noun Commerce examination.

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