A sole trader is a type of business entity where the owner is personally liable for any debts or losses incurred by the business. This means that they are responsible for the financial obligations of the business and may be required to use personal assets to pay off any debts.

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A Sole Trader Is

Question 8

Multiple Choice

A sole trader is:

A) entitled to business profits but not responsible for business losses.
B) the owner of a business that is a legal entity separate from its owner.
C) personally liable for business debts and losses.
D) jointly and severally liable for business losses.

Correct Answer: