The owner does receive compensation from the business in the form of a salary for their time and effort.

No they do not necessarily. The owner only receives a salary if they choose to receive a salary otherwise they can just receive the profit. The owner sets his own salary it could be non-existent, huge or tiny. If I own a couple houses that I rent, I don’t pay myself a salary from my house rental business, I might just accept a neutral cash flow and count my profit as an increase in equity in the houses.

TEK