Post Utme Rhema University 2021 Commerce Question 6

Practice objective / multiple choice question 6 from the 2021 Post Utme Rhema University Commerce examination.

Post Utme Rhema University 2021 Commerce Objective / Multiple Choice

Question 6 POST_UTME_RHEMA_UNIVERSITY • 2021 • 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 assets are liable for business debts.

C. The business is responsible for its own debts, but the owner may be liable for certain obligations.

D. The owner's personal assets are not affected by business debts.

Correct Answer

Correct Option:

The owner's personal assets are liable for business debts.

About This Question

This is Post Utme Rhema University 2021 Commerce Question 6. It is one of the objective questions from the 2021 Post Utme Rhema University Commerce examination.

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