Post Utme Rsu 2019 Commerce Question 16

Practice objective / multiple choice question 16 from the 2019 Post Utme Rsu Commerce examination.

Post Utme Rsu 2019 Commerce Objective / Multiple Choice

Question 16 POST_UTME_RSU • 2019 • 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.

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 debts, but they can still be held personally responsible for certain liabilities.

D. The sole trader's liability is not affected by the business's assets or debts.

Correct Answer

Correct Option:

The sole trader's liability is unlimited, and they can be held personally responsible for business debts.

This is Post Utme Rsu 2019 Commerce Question 16. It is one of the objective questions from the 2019 Post Utme Rsu Commerce examination.

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