entity

(noun)

That which has a distinct existence as an individual unit. Often used for organisations which have no physical form.

Related Terms

Examples of entity in the following topics:

  • Institutions, Markets, and Intermediaries

    • A financial intermediary is an institution that facilitates the flow of funds between individuals or other economic entities.
    • A financial intermediary is an institution that facilitates the flow of funds between individuals or other economic entities having a surplus of funds (savers) to those running a deficit of funds (borrowers).
    • Banks provide a safe and accessible environment for individuals and economic entities to deposit excess funds Additionally, banks also provide a service by packaging deposits into loans that are made available to economic agents (individuals and entities) in need of funds.
    • Additionally, through diversified lending practices, banks are able to lend monies to high-risk entities and by pooling with low-risk loans are able to gain in yield while implementing risk management.

  • Liabilities and Equity

    • A transaction or event obligating the entity that has already occurred.
    • This creates a liability on the business in the shape of capital, as the business is a separate entity from its owners.
    • In financial accounting, owner's equity consists of the net assets of an entity.
    • Net assets is the difference between the total assets of the entity and all its liabilities.
    • The assets of an entity includes both tangible and intangible items, such as brand names and reputation or goodwill.

  • Defining Liabilities

    • A liability is defined as an obligation of an entity arising from past transactions/events and settled through the transfer of assets.
    • In financial accounting, a liability is defined as an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future.
    • A duty or responsibility that obligates the entity to another, leaving it little or no discretion to avoid settlement.
    • A transaction or event that has already occurred and which obligates the entity.

  • Characteristics of a Corporation

    • undefinedAn incorporated entity is a separate legal entity that has been incorporated through a legislative or registration process established through legislation.
    • However, a corporation can be dissolved by a government authority, putting an end to its existence as a legal entity.
    • In the United States a Separate Legal Entity or SLE refers to a type of legal entity with detached accountability.
    • If a business is a separate legal entity, it means it has some of the same rights in law as a person.
    • Some traders and partnerships are not separate legal, entities from the owners.

  • Reporting for a Combined Entity

    • The controlling entity is called its parent company, parent, or holding company.
    • Consolidated financial statements show the parent and the subsidiary as one single entity.
    • The result is one set of financial statements that reflect the financial results of the consolidated entity.

  • US legal issues

    • Thus, one of the first decisions facing new business owners is deciding what legal entity to use for their business.
    • A sole proprietor business can be organized at any time into a different legal entity.
    • As a result, this type of entity is deemed slightly more complex to form and manage.
    • Corporate entities may vary in numbers of owners from a single shareholder to an unlimited number.
    • What are the characteristics of the four types of business legal entities?

  • Usage of Accounting Information

    • Accounting is the vehicle for reporting financial information about a business entity to many different groups of people.
    • In other words, it is the process of communicating financial information about a business entity to stakeholders and managers.
    • Today, accounting is referred to as "the language of business" because it is the vehicle for reporting financial information about a business entity to many different groups of people.
    • Accounting that concentrates on reporting to people inside the business entity is called management accounting.
    • Accounting that provides information to people outside the business entity is called financial accounting.

  • Competitive Advantage

    • Competitive advantage is defined as the strategic advantage one business entity has over its rival entities within its competitive industry.
    • Competitive advantage is defined as the strategic advantage one business entity has over its rival entities within its competitive industry.

  • Defining Current Liabilities

    • In financial accounting, a liability is defined as an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of future economic benefits.
    • A duty or responsibility that obligates the entity to another entity, with no option to avoid settlement.
    • A transaction or event that has already occurred and obligates the entity .

  • Ownership Nature of Stock

    • The capital stock (or stock) of a business entity represents the original capital paid into or invested in the business by its founders.
    • Ownership of stock represents a stake of ownership in the business entity.
    • Stockholders or shareholders are considered by some to be a subset of stakeholders, which may include anyone who has a direct or indirect interest in the business entity.
    • Ownership of shares is documented by the issuance of a stock certificate and represents the shareholder's rights with regards to the business entity.