Which type of business ownership involves shareholders and centralized decision-making?

The choice of corporations is correct because corporations are designed specifically to involve multiple shareholders who own shares of the company. This structure allows for centralized decision-making, typically managed by a board of directors and executive officers, who make strategic decisions on behalf of the shareholders. This governance structure contrasts with other forms of business ownership where decisions may not be centralized, such as independent ownership, where a single owner often has full control, or franchises, which involve a contractual relationship that does not typically confer ownership to individual franchisees.

Additionally, corporations have specific legal protections and arrangements that facilitate raising capital from shareholders, which can lead to more resourceful and strategic operations. This centralized decision-making process helps streamline activities and maintain consistency across the company, promoting accountability and strategic alignment between management and shareholders.