Post Utme Uniosun 2020 Commerce Question 26

Practice objective / multiple choice question 26 from the 2020 Post Utme Uniosun Commerce examination.

Post Utme Uniosun 2020 Commerce Objective / Multiple Choice

Question 26 POST_UTME_UNIOSUN • 2020 • COMMERCE • objective

A sole trader's business is considered a separate legal entity from its owner. Discuss the implications of this separation on the owner's personal liability.

Answer Options

A. The owner's personal assets are protected from business debts.

Correct Answer B. The owner is personally liable for business debts and can be sued in their personal capacity.

C. The business is responsible for paying taxes, but the owner is responsible for business debts.

D. The owner's personal assets are not protected from business debts, but they can be sued in their personal capacity.

Correct Answer

Correct Option:

The owner is personally liable for business debts and can be sued in their personal capacity.

About This Question

This is Post Utme Uniosun 2020 Commerce Question 26. It is one of the objective questions from the 2020 Post Utme Uniosun Commerce examination.

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