Questions
Single choice
Choose the correct answer from the below about sole trader
Options
A.a. A sole trader is an individual who controls and manages a business. This business is not a separate legal entity and the owner is not fully liable for the debts of the business
B.b. A sole trader is an individual who controls and manages a business. This business is not a separate legal entity and the owner is fully liable for the debts of the business
C.c. A sole trader is an individual who controls and manages a business. This business is a separate legal entity and the owner is not fully liable for the debts of the business
D.d. A sole trader is an individual who controls and manages a business. This business is a separate legal entity and the owner is not fully liable for the debts of the business
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Step-by-Step Analysis
Examining the question: 'Choose the correct answer from the below about sole trader.' The four options describe characteristics of a sole trader, focusing on control, entity status, and liability.
Option a: 'A sole trader is an individual who controls and manages a business. This business is not a separate legal entity and the owner is not fully liable for the debts of the business.' This statement correctly notes that a sole trader controls and manages the business and that the business is not a separate legal entity. However, it incorrectly claims that th......Login to view full explanationLog in for full answers
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