BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The concept of business entity assumes that the business has a distinct and separate entity from its owners, managers and partners. It means that, for the purposes of accounting, the business and its owners are to be treated a two separate entities.

Detailed explanation-2: -This idea may also be known as the economic entity assumption, and it posits that all businesses, other related businesses, and business owners should be accounted for separately. In other words, the business owner and the business are two separate entities. Their accounting should be kept separately.

Detailed explanation-3: -You can legally set up any type of business, but the primary reason for setting up a separate entity is to separate the liability of the business from the liability of the individual owner(s). A business or individual can have liability for debts and also for lawsuits for negligenceor illegal actions.

Detailed explanation-4: -Any company is set up as an SLE to legally separate it from the individual or owner, such as a limited liability company or a corporation. If a business is a separate legal entity, it means it has some of the same rights in law as a person. It is, for example, able to enter contracts, sue and be sued, and own property.