Concept:The business entity concept treats the owner and the business as separate persons.Explanation:Under the entity concept, all business transactions are recorded separately from the owner’s personal transactions.When the owner spends business money on personal expenses, it is not treated as a business expense.Instead, it is recorded as drawings because the owner has taken money or goods from the business for personal use.This treatment keeps the business accounts accurate and separate from the owner’s private affairs.Answer:C. entity