Which term would be used to describe a government led by a small group?

The term that describes a government led by a small group is "Oligarchy." An oligarchy is characterized by the concentration of power in the hands of a few individuals or families, who make important decisions on behalf of a larger population. This governance structure often lacks democratic representation and can encompass various forms of rule, ranging from aristocracy to plutocracy, depending on the background and interests of the ruling group.

Understanding why this choice is accurate involves recognizing how it contrasts with the other options. A theocracy is a government based on religious leadership, where religious leaders control the state, blending governance with spiritual authority. A republic is a form of government in which representatives are elected to make decisions on behalf of the citizens, emphasizing broader participation from the populace, which is contrary to the concentrated power seen in an oligarchy. A dictatorship typically indicates a government led by a single individual who holds absolute power, which differs from the collective rule by a small group defined by oligarchy. Therefore, "Oligarchy" is the most precise term to describe a government led by a small group.