Which business entity exposes an owner to potential liability for business obligations?

A general partnership exposes an owner to potential liability for business obligations because in this type of entity, all partners share equal responsibility for the debts and obligations of the business. This means that each partner is personally liable for the full amount of any debts incurred by the partnership, regardless of individual contributions or agreements made among the partners.

In contrast, a C corporation and an S corporation are both structured to limit personal liability, meaning that the owners (shareholders) are not personally accountable for business debts beyond their investment in the corporation. Similarly, a limited liability company (LLC) also provides protection from personal liability for its owners (members), shielding them from being personally responsible for the company's debts.

Therefore, the unique aspect of a general partnership is the shared personal liability, which distinguishes it from the other business entity types that offer varying degrees of protection to their owners.