Post Utme Unilorin 2023 Commerce Question 26

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

Post Utme Unilorin 2023 Commerce Objective / Multiple Choice
Question 26 POST_UTME_UNILORIN • 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 Unilorin 2023 Commerce Question 26. It is one of the objective questions from the 2023 Post Utme Unilorin Commerce examination.

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