Meaning of economic entity
What is an economic entity:
An economic entity is understood to be all those human, material and financial resources that are organized and directed by a group of people, in order to achieve the set of objectives proposed according to the purpose of its creation, which can be lucrative or non-profit.
The economic entity can be made up of individuals or legal entities. Natural persons are those who carry out a commercial activity independently, with their own resources and assets.
Moral persons, on the other hand, are a group of people who come together as associations, companies or already constituted companies, to carry out an economic activity.
The resources that economic entities have can come both individually and from a group of people, that is: their own, contributions of goods or money by the partners that are part of the entity, loans or financing from suppliers.
The economic entities are differentiated and are composed in different ways, among them: physical person or legal person; heritage can be public, private or mixed; the company can be small, medium or large; the activity to be developed will be according to the founded project.
However, economic entities are also differentiated according to their purpose, which can be lucrative or non-profit.
Profitable economic entities are those that are made up of various human, material and financial resources, organized and managed by a group of people who work for the same objective, generate profits and reward the entity's investors with an economic performance.
Non-profit economic entities are generally conceived with a social purpose, so they depend on the investments of sponsors or collaborators. They also have human, material and financial resources, mainly donations from sponsors.