Which of the following best describes a "business entity"?

A "business entity" is best described as a corporation, association, partnership, or other legal entity because these are recognized forms of organization that can conduct business. This definition encompasses various structures that people can create to operate in a commercial capacity, each with distinct legal characteristics and implications.

Corporations are often recognized as separate legal entities, which provides liability protection to their owners. Partnerships combine resources and skills of multiple individuals who share profits and responsibilities. Associations may refer to groups formed for specific purposes, often philanthropic or professional, while other legal entities can include limited liability companies (LLCs) and joint ventures, among others.

The other options do not encompass the broad definition of what constitutes a business entity. A natural person is an individual human being and does not represent a collective or organized business structure. An informal group of friends lacks the formalized and legal recognition that defines a business entity and does not possess the characteristics necessary to conduct business activities. Lastly, while nonprofit organizations can be a type of business entity, they represent only a subset of the broader category that includes various for-profit and other legal forms of business organization.