WAEC Commerce 1996 Question 93

Question 93

Business Units

One of the demerits of sole trading is

  1. A.quick decision taking
  2. B.flexibility in operation
  3. C.unlimited liability
  4. D.pride of ownership
  5. E.ease of commencement
Show the answer and explanation

Answer: C (unlimited liability)

Explanation

A sole trader can lose his private property to pay business debts.