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Encyclopedia > Business entity

The term business entity refers generally to any organization engaged in business activities, regardless of legal structure. Use of the term usually (though not always) indicates an entity's status as for-profit, as opposed to non-profit.


In the United States, for-profit business entities have three basic legal structures:


  Results from FactBites:
 
Maryland Small Business Development Center - Central Region (1234 words)
A business organized as a sole proprietorship is not separate from its owner, but merely a different name with which the owner represents him/herself to the public.
Because of this relationship, a sole proprietorship is known as a pass-through entity.
Since a corporation is a separate legal entity, the corporation actually owns and operates the business on behalf of the shareholder, under the shareholder's total control.
Business organizations - Wikipedia, the free encyclopedia (573 words)
Business organizations is an area of law that covers the broad array of rules governing the formation and operation of different kinds of entities by which individuals can organize to do business.
Business organizations originated with agency law, which permits an agent to act on behalf of a principal, in exchange for the principal assuming equal liability for the wrongful acts committed by the agent.
The basic theory behind all business organizations is that, by combining certain functions within a single entity, a business (usually called a firm by economists) can operate more efficiently, and thereby realize a greater profit.
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