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legal entity vs business entity

Both 'legal entity' and 'business entity' are correct phrases used in the context of law and business. They are often used interchangeably to refer to a company or organization that is recognized as a person under the law. The choice between the two may depend on the specific context or preference of the speaker.

Last updated: March 31, 2024 • 590 views

legal entity

This phrase is correct and commonly used in legal contexts to refer to a company or organization recognized as a person under the law.

The term 'legal entity' is used to describe a company, organization, or other entity that is recognized as a person under the law, capable of entering into contracts, owning property, and being sued.

Examples:

  • A corporation is a legal entity that can enter into contracts.
  • Each subsidiary is considered a separate legal entity for liability purposes.
  • The partnership is a legal entity distinct from its partners.

Alternatives:

  • corporate entity
  • juridical person
  • legal person
  • entity recognized by law
  • incorporated entity

business entity

This phrase is correct and commonly used in business contexts to refer to a company or organization engaged in commercial, industrial, or professional activities.

The term 'business entity' is used to describe a company, organization, or other entity engaged in commercial, industrial, or professional activities, regardless of its legal structure.

Examples:

  • A sole proprietorship is a common type of business entity.
  • The merger created a new business entity with a global presence.
  • The franchise operates as a separate business entity.

Alternatives:

  • commercial entity
  • enterprise
  • company
  • organization
  • firm

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