According to the entity concept, ownership is

The entity concept (also called the business entity concept) treats a business as a distinct accounting unit, completely separate from the personal affairs of its owner or owners, even where the business has no separate legal existence, as with a sole proprietorship.

Under this concept, ownership of the business's assets is recorded as belonging to the business itself, not to the owner personally, and the amount the owner has invested is shown as a liability of the business to the owner, called capital. This is why the owner's personal transactions, unrelated to the business, are kept out of the business's books entirely, while any resources the owner draws out for personal use are recorded as drawings against their capital, not simply ignored as if the assets were always theirs to take freely.

This differs from saying ownership is "not separated" from the business, which would blur personal and business affairs together and defeat the purpose of maintaining separate business accounts in the first place; and it is unrelated to whether management or a board of directors holds ownership, since the entity concept is about separating owner from business, not about identifying who runs the business.

Whenever a question tests the entity concept, look for the idea that the business is accounted for as if it were a person in its own right, distinct from whoever owns or funds it.