business entity concept
Definition
The idea that a corporation should be considered to be an individual entity separate from the individuals who make up the corporation, or those who finance it. The business entity concept introduces a separation between the responsibilities of companies and those of affiliated individuals, and also provides continuity beyond the involvement of any one affiliate.
Use this term in a sentence
“ You should try and come up with a good business entity concept that will make greater profits for your company. ”
“ The business entity concept ensured that they created a seperate structure so they wouldnt be responsible for any sort of issues with the company. ”
“ Victoria knew that a business entity concept was going to allow her to trust her board of directors more because they would be able to chart a new direction while listening to consumer concerns. ”
