Post Utme Unilag 2023 Commerce Question 26

Practice objective / multiple choice question 26 from the 2023 Post Utme Unilag Commerce examination.

Post Utme Unilag 2023 Commerce Objective / Multiple Choice
Question 26 POST_UTME_UNILAG • 2023 • COMMERCE • objective

A sole trader's business is considered a separate legal entity from the owner's personal assets. However, this separation is not absolute. Discuss the circumstances under which a sole trader's personal assets may be at risk of being used to settle business debts.

Answer Options

A. When the sole trader has guaranteed a business loan.
Correct Answer B. When the sole trader has commingled personal and business finances.
C. When the sole trader has failed to maintain proper accounting records.
D. When the sole trader has been sued personally for business-related negligence.
Correct Answer
B
Correct Option:
When the sole trader has commingled personal and business finances.

About This Question

This is Post Utme Unilag 2023 Commerce Question 26. It is one of the objective questions from the 2023 Post Utme Unilag Commerce examination.

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