While extending CRM, we typically come across multiple "Organisation" and "Individual" stakeholders. For example in a education organisation you may have multiple service providers, fund providers, external organisations etc. with corporate or Account type attributes and Students, Teachers, Exam markers etc. with Individual or Contact type attributes. While we can rename Account entity to Organisation and Contact entity to Individual and include a category or type attribute in each to classify the type of stakeholders, it is not intuitive and imposes constraints.
If CRM can provide a Account type and Contact type superset and the ability to create new entities under this structure, we will be able to create separate entities for each type of stakeholder.