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WAEC Commerce 2024 Question 9

Question 9

Business Units

A disadvantage of a sole trader is that he

  1. A.pays tax to government.
  2. B.has limited liability.
  3. C.has unlimited liability.
  4. D.does not share profit with others.
Show the answer and explanation

Answer: C (has unlimited liability.)

Explanation

A sole trader's personal property can be taken to pay business debts: unlimited liability.