Final answer:
The concept that mandates the separation of a business's financial information from its owners or other businesses is the Business Entity Concept, foundational in the fields of accounting and business.
Step-by-step explanation:
The concept that states each entity is an economic unit and is kept separate from other economic units to prevent the intermingling of affairs is known as the Business Entity Concept. This concept is foundational in accounting and business, ensuring that the financial transactions and affairs of a business are recorded and reported separately from those of its owners or other businesses.
In the history of business, which can be traced back to organizations such as the Dutch East India Trading Company founded in 1602, the evolution of the modern corporation as a distinct legal entity has played a crucial role.
Modern corporations are recognized as separate legal entities from the individuals who own or work in them. This recognition allows individuals to participate in business activities without bearing the legal consequences of the businesses' actions, as the entities themselves are held accountable.