How would one typically implement a service layer in an MVC architecture? Is it one object that serves all requests to underlying business objects? Or is more like an object
I personally prefer #2, and yes, it would generally be configured in a bootstrap, or the dependencies would be resolved using some sort of IoC container to give you the actual concrete instances.
I would also like to comment, and yes I understand this is probably more of a personal preference. Try to avoid using the name "Service" layer for these objects. refer to them as repositories or something else. if you use service, that term becomes overloaded ... because then devs are like, "do you mean like, a rest or wcf service?". trust me, we did that with a recent project, and we confuse ourselves all the time when we're talking about where to make code changes :-P