Post Utme Rhema University 2023 Commerce Question 36

Practice objective / multiple choice question 36 from the 2023 Post Utme Rhema University Commerce examination.

Post Utme Rhema University 2023 Commerce Objective / Multiple Choice
Question 36 POST_UTME_RHEMA_UNIVERSITY • 2023 • 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 best describes this situation?

Answer Options

A. Limited liability
B. Unlimited liability
C. Separate legal entity
Correct Answer D. Personal liability
Correct Answer
D
Correct Option:
Personal liability

About This Question

This is Post Utme Rhema University 2023 Commerce Question 36. It is one of the objective questions from the 2023 Post Utme Rhema University Commerce examination.

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