Post Utme Veritas University 2019 Commerce Question 16

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

Post Utme Veritas University 2019 Commerce Objective / Multiple Choice

Question 16 POST_UTME_VERITAS_UNIVERSITY • 2019 • COMMERCE • objective

A sole trader's business is considered a separate legal entity from its owner. Discuss this statement with reference to the concept of limited liability.

Answer Options

A. The sole trader's business is not a separate legal entity from its owner.

B. The sole trader's business is a separate legal entity from its owner, but the owner has unlimited liability.

Correct Answer C. The sole trader's business is a separate legal entity from its owner, and the owner has limited liability.

D. The concept of limited liability does not apply to sole traders.

Correct Answer

Correct Option:

The sole trader's business is a separate legal entity from its owner, and the owner has limited liability.

About This Question

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

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