Agent (economics)

A business entity ( in economics known as business entity ) is a process involved in the productive economy, self-contained and thus deferred to the outside, organized market party. It is important to differentiate between farms on the one hand and private households on the other. Both differ in terms of production and consumption. Households consume and produce primarily for their own consumption, while providing enterprises as foreign demand nationwide economic units tangible goods, services or information for the needs of other businesses or households.

The term is considered in addition to households and businesses and the public finances as economic units.

The delimitation of economic units is particularly necessary in accounting.