What type of ownership includes businesses typically owned by a single person or a small group?

Independent ownership refers to businesses that are typically owned by a single individual or a small group of individuals who are directly involved in the operation and management of the business. This model allows for direct control over the business, making it easier for the owner(s) to make decisions, implement changes, and respond to the needs of their customers without needing to navigate complex corporate structures.

The characteristics of independent ownership often include a personalized approach to business, a strong connection with the community, and the ability to innovate quickly based on customer feedback. This type of ownership usually pertains to sole proprietorships or small partnerships, where the financial risks and rewards are closely tied to the owners themselves.

In contrast, corporations are larger entities that are owned by shareholders and operate under a more formal structure with board management, which separates ownership from day-to-day operations. A private company can also refer to businesses owned by a limited number of people, but the term often implies larger companies compared to what is typically understood as independent ownership. A franchise operates under a licensing agreement, allowing individuals to use a brand's trademark and business model, but is not solely indicative of independent ownership, as it usually involves following a corporate structure and guidelines set by the franchisor.