Post Utme Redeemers University 2022 Commerce Question 14

Practice objective / multiple choice question 14 from the 2022 Post Utme Redeemers University Commerce examination.

Post Utme Redeemers University 2022 Commerce Objective / Multiple Choice
Question 14 POST_UTME_REDEEMERS_UNIVERSITY • 2022 • COMMERCE • objective

A business is considering a sole trade structure for its operations. However, the business is concerned about the potential risks associated with sole trade, including the possibility of unlimited personal liability and the potential for the business to be affected by the owner's personal circumstances. Which of the following is the most appropriate business structure for the business to adopt?

Answer Options

A. Register the business as a sole proprietorship to minimize startup costs and administrative burdens.
B. Form a partnership to share the risks and responsibilities associated with the business.
Correct Answer C. Establish a limited company to limit personal liability and provide a more formal structure for the business.
D. Abandon the sole trade structure and adopt a different business model.
Correct Answer
C
Correct Option:
Establish a limited company to limit personal liability and provide a more formal structure for the business.

About This Question

This is Post Utme Redeemers University 2022 Commerce Question 14. It is one of the objective questions from the 2022 Post Utme Redeemers University Commerce examination.

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