| Institutional unit |
An institutional unit is an economic entity that is capable, in its own right, of owning assets, incurring liabilities and engaging in economic activities and in transactions with other entities. The main attributes of institutional units may be described as follows: (a) An institutional unit is entitled to own goods or assets in its own right; it is therefore able to exchange the ownership of goods or assets in transactions with other institutional units; (b) It is able to take economic decisions and engage in economic activities for which it is itself held to be directly responsible and accountable at law; (c) It is able to incur liabilities on its own behalf, to take on other obligations or future commitments and to enter into contracts; (d) Either a complete set of accounts, including a balance sheet of assets and liabilities, exists for the unit, or it would be possible and meaningful, from an economic viewpoint, to compile a complete set of accounts if they were to be required. |
