It could be any object in the system that we want to model and store information about. In engineering and computer programming, an entity is a unit – the term is used to identify it as such. “Something that exists apart from other things, having its own independent existence.” It is a thing that has individual, definite existence outside or within our minds – anything real in itself.Įntities are described as follows by the Cambridge Dictionary: The word also signifies separateness from other things that exist – from other existences. In order to be one all it has to do is to exist – to be. In non-business terms, the word refers to a real thing, a being – something that exists. In most cases, business entities are set up to sell a product or provide a service.Īs far as regulations, taxation and liability are concerned, a subsidiary is a distinct legal entity, unlike a division, which is a business that is fully integrated within the main company. Not for profit (non-profit): Their goal is to have a specific impact.Ī business entity is one that is formed and administered – according to commercial law – in order to engage in charitable work, business activities, or other permitted activities.There are two main types – people based and capital based. For profit: Their goal is to generate a profit.Economic entities are regarded by economists as consumers. Legal entities have the legal capacity to enter into contracts or agreements, incur and pay debts, pay taxes, assume obligations, sue and be sued in their own right, and be held responsible for their actions. For example, if you own 100% of the shares of a commercial enterprise, even though it is your company, it is a different entity from you as far as the law and the government’s tax department are concerned. In the world of business and finance, an entity is an individual, company, partnership, association, club, cooperative that has a legal and separately identifiable existence.
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