What are the differences between a ‘company’, ‘corporation’, ‘enterprise’, and ‘firm’?
In: Other
A “company” is *any* business that trades and sells goods (physical products like CDs or shoes) or services (like a mechanic shop that does oil changes on cars) for money.
A “corporation” is a type of company where the ownership is divided up between shareholders (think of stocks – stocks are shares of ownership in a business). So you don’t have a single one person who outright owns the business, they are responsible to other shareholders and there are other legal obligations they have to observe.
“Enterprise” is another pretty broad term that just means means “business endeavor”. It is not a legally binding term like corporation so a person can use it freely in their company’s mission statement without any heartache.
A “firm” is a company managed under a partnership between two or more people. Usually used, at least in the US, to describe legal offices where you’ve got a few lawyers who create their own company.
Latest Answers