How do "Accounts" differ from "Contacts" in Dynamics 365 Sales?

In Dynamics 365 Sales, the distinction between "Accounts" and "Contacts" is fundamental to understanding customer relationships and organizational structure. Accounts are entities that represent businesses, organizations, or other entities that can engage in transactions, build relationships, and have revenue potential. They typically hold information related to the company, such as name, address, industry, and other relevant business details.

Contacts, on the other hand, refer to individuals—people who work for or are associated with those businesses or organizations. Contacts capture personal details such as name, email, phone numbers, and their role within the organization. This differentiation is crucial as it allows sales representatives to structure their outreach and relationship management effectively; they can engage with the appropriate individuals (Contacts) within a business (Account) to promote products and services.

Understanding this relationship between Accounts and Contacts helps streamline sales processes, improve communication, and ultimately drive better customer satisfaction and revenue generation. Hence, the correct answer highlights the relationship of Accounts as entities of businesses, while Contacts focus on the individual representatives within those entities.