Post Utme Osustech 2022 Commerce Question 16

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

Post Utme Osustech 2022 Commerce Objective / Multiple Choice
Question 16 POST_UTME_OSUSTECH • 2022 • COMMERCE • objective

A sole trader's business is considered a separate legal entity from its owner. However, this separation is not absolute. Discuss the implications of this separation on the sole trader's liability and taxation.

Answer Options

A. The sole trader's liability is limited to the business's assets.
Correct Answer B. The sole trader's liability is unlimited, and they can be held personally responsible for business debts.
C. The sole trader's liability is limited to the business's profits.
D. The sole trader's liability is unlimited, but they can claim business expenses as deductions.
Correct Answer
B
Correct Option:
The sole trader's liability is unlimited, and they can be held personally responsible for business debts.

About This Question

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

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