Business Entity COncept

Business entity concepts limits the economic  data in an accounting system to data related to directly to the activities of the business. This makes the business be seen as an entity separate form its owners, creditors, or other business.

A business entity can be created in the following:

• Proprietorship: owned by one individual. 
• Partnership: owned by two or more individuals.
• Corporation: organized under state or federal statutes as a separate legal taxable entity.
• Limited liability company: combines the attributes if a partnership and a corporation.​