An entity refers to a real-world object, concept, or thing that is represented in a database. Attributes are the characteristics or properties that describe these entities. They provide details about the entities and define their features. Together, entities and attributes form the foundation of a database schema, organizing data in a structured manner. Attributes can be categorized as simple (atomic) or composite (composed of multiple sub-attributes), and they help to define the structure and relationships within a database. Properly defining entities and attributes is essential for designing efficient and effective database systems.