Post Utme Summit University 2024 Commerce Question 11

Practice objective / multiple choice question 11 from the 2024 Post Utme Summit University Commerce examination.

Post Utme Summit University 2024 Commerce Objective / Multiple Choice
Question 11 POST_UTME_SUMMIT_UNIVERSITY • 2024 • COMMERCE • objective

A sole trader's business is considered a separate legal entity from its owner. However, in the event of the owner's death, the business is automatically dissolved. Which of the following is a correct statement regarding the dissolution of a sole trader's business?

Answer Options

Correct Answer A. The business is automatically dissolved and the owner's estate is responsible for settling any outstanding debts.
B. The business is not dissolved and can continue to operate under the control of the owner's executors.
C. The business is not dissolved, but the owner's estate is responsible for paying any outstanding taxes.
D. The business is automatically dissolved, but the owner's estate is not responsible for settling any outstanding debts.
Correct Answer
A
Correct Option:
The business is automatically dissolved and the owner's estate is responsible for settling any outstanding debts.

About This Question

This is Post Utme Summit University 2024 Commerce Question 11. It is one of the objective questions from the 2024 Post Utme Summit University Commerce examination.

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