An ENtiTy means economic unit who perform economic activities . so why NON BUSINESS entity IS a types of entity ?
Dear Student,
Here is your answer,
First of all you need to understand the meaning of Economic activity, it means all those activities which involves Money .
For example: producing, distributing, or consuming products or services is an economic activity
And Non Business Entity also performs economic activties such as NGOs distributing food to the backward areas , it is to be purchased with money only. Therefore it s a type of Entity.
Regards.
Here is your answer,
First of all you need to understand the meaning of Economic activity, it means all those activities which involves Money .
For example: producing, distributing, or consuming products or services is an economic activity
And Non Business Entity also performs economic activties such as NGOs distributing food to the backward areas , it is to be purchased with money only. Therefore it s a type of Entity.
Regards.