What document sets the rules governing the operation of a corporation?

The correct answer is Bylaws. Bylaws are a critical internal document that defines the rules and procedures for the governance of a corporation. They typically outline the structure of the company, including the roles and responsibilities of the board of directors, the procedures for holding meetings, voting rights, and the process for electing officers. Bylaws help ensure that the corporation operates in an orderly manner and provides a framework for decision-making within the organization.

While the Articles of Incorporation are important as they establish the existence of the corporation with the state and lay out fundamental details such as the company's name, purpose, and the number of shares it is authorized to issue, they do not govern day-to-day operations. Instead, they serve as the foundational legal document needed to create the corporation in the eyes of the state.

Operating Agreements are typically associated with limited liability companies (LLCs) and outline the management structure and operating procedures of the LLC, rather than a corporation. Company Regulations is a term that is less formal and not commonly used in the context of corporate governance, making it less relevant than bylaws.