1. Which of the following business structures is characterized by the fact that the owners have unlimited liability for the debts and obligations of the business? A) Limited liability company (LLC) B) Corporation C) Sole proprietorship D) Partnership Answer: C) Sole proprietorship Rationale: In a sole proprietorship, the owner is personally responsible for all debts and obligations of the business, leading to unlimited liability. 2. What legal document outlines the organization of a corporation, including its purpose, structure, and operating procedures? A) Articles of organization B) Partnership agreement C) Operating agreement D) Articles of incorporation Answer: D) Articles of incorporation