In a ______, the owner has unlimited liability for any business debts.

In a sole proprietorship, the owner holds unlimited liability for any business debts. This means that if the business incurs debts or faces legal issues, the owner's personal assets, such as their home or savings, can be used to satisfy these obligations. This structure allows for simple formation and complete control by the owner, but it also carries the significant risk that their personal financial situation is directly tied to the success or failure of the business.

In contrast, corporations and limited partnerships provide some level of protection for personal assets, as owners or shareholders are typically only liable for the debts of the business up to the amount they have invested. Non-profit organizations, while often involved in charitable activities, also do not expose their owners to unlimited liability in the same way that a sole proprietorship does. Thus, sole proprietorship is distinct in that it places the onus of business liability fully on the individual owner.